The price of oil rose on Wednesday’s early session, following the news that Trump canceled the nuclear agreement with Iran. U.S. West Texas Intermediate (WTI) crude prices edged up by 1.7 percent, or $1.18, to settle at $70.24 per barrel. International benchmark for oil futures London Brent crude finished the session 1.8 percent higher, or $1.36, at $76.34 per barrel. Both WTI and Brent are currently close to their highest level seen last 2014.
Yesterday, U.S. President Donald Trump walked away from the global accord with Iran that was signed three years ago. This raised uncertainties as to the future of oil supply especially in light of the possibility that sanctions will be re-imposed on Iran – a major oil exporter. Apart from that, Trump’s withdrawal from the agreement will certainly increase tension in the Middle East and may bring about a military clash between Israel and Iran.
The euro declined against the U.S. dollar on Wednesday. Political worries surrounding the Italian government have dragged the euro lower. Many in Italy expect early election. The common currency closed at $1.1867 after dropping to $1.1838 overnight – Its weakest level since December 22. Against its Japanese counterpart, the euro also lost strength and closed at 129.400 yen.