S&P 500 futures are at a session low, down 0.75% as Trump submarines any talk of an Iran deal.
Reports suggested there could be direct talks between Iran and Vice President JD Vance soon but it looks like that’s not the path Trump wants to go down. He writes:
I have asked Vice President Vance to focus his complete and total attention on the Massive Corruption and Crime taking place in Democrat run Cities and States throughout the U.S. The Blue States, such as Minnesota, California, Illinois, and many more, are all poorly run, corrupt disasters. Billions of Dollars is being stolen each and every month. Our Budget could be quickly BALANCED with the correction of this large scale criminal activity. CORRUPTION is in the Democrat Leadership’s blood! We don’t need a deal with Iran. Those days have long since passed. We’ve got their money, Hundreds of Billions of Dollars, and we’ve got their Strait! Thank you for your attention to this matter. President DJT
There have been reports suggesting that Trump was leaning towards leaving the status quo in place in Iran, where the US military manages a convoy and Iran picks off tankers from time to time. The US is also trying to ramp up its ground-based blockade on Iran.
So it’s basically a seige now and we will have to see how that develops, but it’s certainly a tighter oil market that we would have if Iran’s oil and Hormuz oil was allowed to fully flow.
It’s also worth noting that Trump is focused his messaging on corruption here, which is something that was highly cited by voters in the midterms. Trump appears to be trying to flip that back on Democrats.
This morning, he also went back to the greatest hits collection, threatening Mexico with tariffs due to illegal immigrants.
Here we go again! With the perceived loss by the Republicans in the Midterms – I WAS NOT ON THE BALLOT- the INVASION of our Country is taking place again. Huge CARAVANS are forming and beginning their illegal march through Mexico. Many of the people in these Caravans are those that various countries don’t want – “Send them to America,” they say – But they will not be accepted! MEXICO MUST STOP THEM, NOW, and if they do not do so, the Tariffs on Mexico will be IMMEDIATELY DOUBLED. MEXICO, THE GOVERNOR OF TEXAS, THE VERY LIBERAL NEW GOVERNOR OF TEXAS, OUR GREAT BORDER PATROL, & ICE, HAVE BEEN SO INFORMED. There will be no leniency! Thank you for your attention to this matter.
Trump is also leaning on the Senate to pass a voter ID act.
Oil has risen about 1% since the Iran comment from Trump.
This article was written by Adam Button at investinglive.com.