In mid-October President Trump will be required to certify the Iranian Nuclear compliance once again or push to nullify the multi-nation Nuclear Arms Treaty. Already the US has presented evidence of an unrelated UN Security Council resolution violation. This resolution has not been accepted by Iran and is insufficient to breach the treaty. While the UN will not support strict nuclear inspection enforcement, the odds are strong that new US economic sanctions will be imposed on Iran in mid-October. This will add some wind behind the oil rally, as it will be assumed the US is one step closer to abrogating the nuclear deal and shutting down a major portion of Iranian oil sales.
Listen to Are Commodities Getting Ready for a Big Move?
Iran’s production goal is 4 Million barrels and any enforceable US sanctions or related military strike will send oil prices surging back towards $60 and shut down some of the newfound windfall.
This post was published at FinancialSense on 09/22/2017.
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