Investors warned to expect increased volatility as US pulls out of Iran deal
Donald Trump’s decision to withdraw the US from the nuclear deal with Iran had swift repercussions on the global markets this morning, as the oil price surged to new post-2014 highs.
The announcement from the US president, who described the deal as “decaying and rotten” was roundly condemned by the remaining signatories to the 2015 deal, with Britain, France and Germany vowing to strive to salvage some aspects of the agreement with fellow parties China, Russia and Iran itself. The announcement left the US looking increasingly isolated, with only Israel and Saudi Arabia declaring their support for America’s withdrawal.
Trump said yesterday America will be imposing “powerful” sanctions with all but immediate effect. The price of a barrel of crude oil rose 1.10% overnight to reach 70.67 WTI.
Tom Elliott, international investment strategist at deVere Group said today investors should expect an increase in market volatility and advises they ensure that they are properly diversified.
The senior analyst said that “Investors should expect an increase in market volatility following Trump’s announcement that he is quitting the Iran nuclear deal,” and warned of the strong potential for “Global stock market sell-offs as the world adjusts to the news.”
Sourse: International Investment
May 9, 2018