Oil crashing on Iran deal hopes — position for more downside as supply flood looms
Oil prices just posted their worst month in six years. The reason: President Trump says the U.S. is close to a deal with Iran that could flood the market with more oil supply. A final decision is expected imminently.
Idea
Brent crude just suffered its worst monthly decline in six years, and the selling may not be done. President Trump is meeting in the White House Situation Room to make a final call on an Iran nuclear deal — and the market is already pricing it in as likely. If a deal goes through, Iranian oil returns to the global market, adding millions of barrels of supply on top of an already-oversupplied market. Even the rumor has been enough to crush prices. This isn't just a one-day story; the supply shock from an Iran deal would weigh on oil for weeks or months. Energy stocks like those in XLE would also feel the pain as profit expectations get slashed.