- Wednesday’s price drop – around $8 a barrel – deepened after Vance posted on
- Sen. Chuck Schumer (D), the likely Senate majority leader in the next Congress, has promised that Democrats will push to end the war.
“This drop in the price of crude oil is entirely due the American election and the conviction that Trump will defuse the situation rather than escalate it with regard to Iran. JD Vance’s statement amplified that feeling,” Ben Cahill, a nonresident senior fellow at the Atlantic Council, told Axios via email.
What they say: Pavel Molchanov, an analyst at Raymond James, said in remarks distributed to reporters that Vance’s message was a “key catalyst” for the current drop in oil prices.
- “The market is saying that Congress and members of his own administration are likely to start acting as a constraint on President Trump’s war in Iran,” Seb Barker, a strategist at hedge fund Marshall Wace, told the Financial Times.
Catch up quickly: Oil prices were already falling at the start of the week following signs of new US-Iran diplomacy.
What we’re looking at: “It remains unclear whether Vance’s comments reflect a more accommodating stance toward Iran,” Molchanov said.
- “For oil prices to fall sustainably, a sustainable exit ramp is necessary,” he added.
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