The market assesses the consequences of the severance of the agreement on Iran’s nuclear program

After the US President D. Trump announced the severance of the agreement on Iran’s nuclear program, the market saw an increase in optimism about oil. Thus, the support for oil is provided by the expectations of the introduction of sanctions against Iran and the possibility of reviewing the situation in the Middle East. The main brands of oil Brent and WTI show an increase of 3% from the beginning of the day.

With the strengthening of the cost of oil, support was also received by the US dollar, mainly due to the increase in the profitability of the US state bonds. 10-year-old US state bonds at the opening of the European session overcame the psychological mark of 3%. (More on the impact of government bonds on the market).

Such a high profitability, in turn, will have a deterrent effect on the stock exchanges, due to which the US dollar will be limited.

Hanzenko Anton