Donald Trump said he had spoken with Vladimir Putin and that Russia had agreed to supply diesel to the US and wider market, starting with over 300,000 tons immediately. He said a further 500,000 tons would be delivered in November and 1,000,000 tons “immediately thereafter”, followed—depending on refinery conditions—by another 3,000,000 tons within a short period. Trump also referred to “total control” of the Strait of Hormuz and reiterated that Iran would not obtain a nuclear weapon.
Market Reactions And Energy Prices
Markets reacted with a pullback in crude before a partial recovery. West Texas Intermediate fell from about $91.40 to $89.95, then settled above $90 per barrel, while the US Dollar Index eased to 102.20 from roughly 102.26 and was still up 0.08% on the day. The accompanying risk-sentiment guide defined “risk-on” as a preference for higher-risk assets and “risk-off” as a shift towards safety, typically supporting bonds, Gold and safe-haven currencies such as the USD, JPY and CHF; by contrast, AUD, CAD, NZD and some minor FX such as RUB and ZAR tend to strengthen in risk-on conditions.
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