Breaking: Crude Tanks on Trump Ceasefire Post
Message From Trump
Crude prices are falling sharply today in response to breaking news of a potential ceasefire between the US and Iran. Speaking on X, Trump just posted the following message:
“I AM PLEASE TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST. BASED ON THE TENOR AND TONE OF THESE IN DEPTH, DETAILED, AND CONSTRUCTIVE CONVERSATIONS, WITCH WILL CONTINUE THROUGHOUT THE WEEK, I HAVE INSTRUCTED THE DEPARTMENT OF WAR TO POSTPONE ANY AND ALL MILITARY STRIKES AGAINST IRANIAN POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A FIVE DAY PERIOD, SUBJECT TO THE SUCCESS OF THE ONGOING MEETINGS AND DISCUSSIONS. THANK YOU FOR YOUR ATTENTION TO THIS MATTER! PRESIDENT DONALD J. TRUMP.”
Bearish Risks
Crude futures have plunged around 14% in a matter of minutes, falling from mid 98s to lows of 84.60 where the sell off has currently stalled. Looking ahead, markets will be focusing on any news around the Strait of Hormuz. If this US ceasefire on Iranian energy sites is reciprocated by Iran (Strait of Hormuz reopened), this could see heavier selling in crude as traders look ahead to a broader ceasefire. For now, all focus will be on incoming headlines with crude set to fall deeper on any further positive news suggesting an end to supply disruptions is forthcoming.
Technical Views
Crude
The reversal lower from the 101.69 level has seen price breaking down below 95.06, testing deeper support at the 84.60 level. This area is holding for now though risks of a further sell off remain. If we do push lower, 77.65 will be the next support to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.