Oil Prices Climb On Israel PM’s Words

ראש הממשלה בנימין נתניהו עם ראש ממשלת אוסטרליה מלקולם טרנבול חתימה עם הסכמים משותפים והצהרות לתקשורת Photo by Kobi Gideon / GPO

Benjamin Netanyahu has come out as the Prime Minister of Israel and said that he wants to revisit the nuclear deal with Iran even though the US has pulled out. The problem with this whole situation is that the US has pulled out of the deal even though they know that that could have dramatic consequences in the Middle East. People are concerned that peace in the Middle East might become more fragile, and that could cause problems in the markets.

The US oil market spiked when the Israelis said they might go back to the table with IRan because that means that peace could be held. Oil prices jumped on the confidence that this statement gave people, and it is important to remember that a lot of people investing in oil have always been worried about how the Middle East peace talks have gone.

The sudden withdrawal of the US from the Iran nuclear deal has caused a lot of tension in the American markets because the American SEO not know what will happen next. They know that the deal could go on with other countries, but they do not know how angry Iran will be with America. This little problem could cause trade problems, and that is where people stop investing in oil.

Oil used to be one of the steadiest investments in the world because its price has stayed with inflation all this time. It is an investment that almost always pays off, but political tensions are making it hard for people to invest in it. They want to get their money back as fast as possible, and they will pull out their money if they think that they will not see a quick rise in the price of oil.

Oil investors in America react differently than other countries because they are so far from the action. America has had the worst relations with the Middle East over the past 100 years than anybody else, and they are often seen as antagonizers in the Middle East. Investors know this, and they prefer to stay away unless there is a clear sign that peace can be achieved. Minister Netanyahu’s speech gives room for the peace deal to be worked out, and that makes it easier for people in America to invest in oil.

The price of gold and the price of oil tend to stay together, and that is another thing that people in America watch. When Americans believe that oil can live up to its potential, they jump in to invest. It is an opportunistic market, and it is a market that people should invest in for the longterm. There is no reason to believe that oil will turn out to be a bad investment, and there is no reason to believe that countries like Iran will stop trading. Everyone is relying on the oil pipeline to the west, and it is better to keep trading to see the price rise over time.

The final say on the Iran nuclear deal will determine how confident everyone is in this deal. They will feel like they have been given the best chance to invest, and that peace accord could make them feel even more confident to pour their money back into oil. Someone who was using oil to hide their money might go back to doing that, and large funds will go back into oil because they are gambling with millions of dollars every day.

The President would do well to see how the markets react tot he price of oil, and he should be certain that he has invested his own time in researching the field. Oil prices will remain stable as long as he is trying with the Iranians, and he should be discouraged from antagonizing them. This nuclear deal could change the global oil market, and it could help bring more peace tot he region.

Benjamin Netanayahu has taken the first step in keeping these peace deals open, and he knows that he can help carry along this process until America is ready to get back in it again. He will be the stop-gap until cooler heads prevail in what is a very tense negotiation.


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