Monday, 24 September 2018
Latest news
Main » Oil prices drop as focus turns to Trump, Asian stocks climb

Oil prices drop as focus turns to Trump, Asian stocks climb

14 May 2018

The Trump Administration's sanctions will hit Airbus and Boeing to the tune of roughly $39 billion. Trump has a May 12 deadline to determine whether to extend sanction waivers and said on Monday he will announce his decision on Tuesday.

But Boeing (BA) was hit with bad news as Treasury Secretary Mnuchin announced that the aerospace giant's license to sell almost $20 billion in jets to Iran would be revoked. "The existing licenses will be revoked".

Many analysts in Europe said they are dismayed by Trump's decision, which they said has unnecessarily put global security at risk and raised the prospect of a unsafe confrontation with Iran. Earlier this year, during the visit from Iranian President Hassan Rouhani to the country, a joint statement recorded the support from India.

Boeing later inked a deal with Iran Air for 80 aircraft with a list price of about $17 billion, promising that deliveries would begin in 2017 and run until 2025.

Afghan govt building attack kills 15
No group has claimed responsibility for the attack yet. "Security forces are in the area chasing and fighting them", he said. However, the Taliban is now taking part in its annual spring offensive and has launched a number of attacks in recent weeks.

Every 10-cent jump in gas prices costs Americans an extra $10.6 billion per year to fill up their tanks, Morgan Stanley found. No deliveries have been made yet.

United States officials estimate there are about six Americans being held in Iran, though experts on the country say the number is probably higher, as some families choose not to publicize their loved ones' situation in the hope that a quiet approach will make for a quicker release.

"It is absolutely incumbent upon our government to do everything we can to make sure Americans are not left behind, and that we bring the Americans who are detained there home, that we find Robert Levinson and bring him home", Sherman said during a call with reporters arranged by the group National Security Action.

Energy added the most points to the pan-European FTSEurofirst 300 index of regional stocks, which closed up 0.74 percent, led by Royal Dutch Shell and BP.

Gulf State Welcomes US Call on Iran Deal
Even before Trump's announcement gasoline prices were almost 50 cents a gallon higher than a year ago. And there is no guarantee that Iran's major customers will comply with new sanctions.

While European countries are staying in the deal, Airbus will likely have to pull out of the contract as it needed a US license for the deal since over 10% of parts and labor were provided by USA companies.

These sanctions were amended to also target oil marketing companies that buy Iranian oil (including indirect resales), as well as exporters of services and equipment to be used in Iran's oil industry. The US has been trying to destabilize Iran for decades, he said. Still, the USA sanctions could have deep consequences: If France's Total, which has a big US operation, is forced to pull out of Iran's South Pars project, China's CNPC, which is now Total's partner, would likely take over.

He said there might be some exclusions, but he did not elaborate. The company said it hoped the deal would be left alone since it was signed according to rules in place at the time. For oil and other petroleum products there will be a 180-day period in which people doing business with Iran will be able to wind down those operations before facing penalties. The last time the U.S. sanctioned Iran, oil production fell by a hefty million barrels per day.

The new sanctions might have less effect. S. out of an worldwide nuclear deal with Iran that was struck late 2015, raising the risk of conflict in the Middle East and casting uncertainty over global oil supplies amid an already tight market. It remains unclear how much those nations will comply, if at all.

Russia Warned Iran Ahead of Israel's Extensive Strikes in Syria
It also came just hours after President Donald Trump announced the withdrawal of the USA from the Iran nuclear deal. The annexation has not be recognised by the worldwide community.

"It's going to take some time before we can ascertain what the impact will be, because we're going to have to wait and see what the response will be from Europe and how aggressive the USA will be", Brian Gallagher, head of investor relations at Euronav NV, one of the world's largest tanker owners, said by phone. He did not say which countries, but Saudi Arabia has the greatest spare production capacity. Along with this, the Trump order has also spiked the oil prices.

Oil prices drop as focus turns to Trump, Asian stocks climb