US State Department says that Iran’s response to nuclear deal ‘not constructive’

  • A US State Department spokesperson said the United States had received Iran’s response to the EU bid to revive the 2015 deal and would formulate its own response.
    “We are studying it and will respond through the EU, but unfortunately it is not constructive,” the State Department spokesperson said.
  • Iran sent its reply to the EU on Thursday after careful examination, Iranian Foreign Ministry spokesperson Nasser Kanaani said in a statement on Telegram. “The sent text has a constructive approach with the aim of finalizing the negotiations,” the statement said.

This new news from the US Star=te Dept should act as a tailwind for oil (check out that link above to my earlier post for why)

Iran says its submitted a constructive response to finalize revival of the nuclear deal

Iran state media reporting statements from the Iranian Foreign Ministry.

  • Says Iran has submitted a constructive response to US proposals on terms to revive the 2015 nuclear deal
  • Says the response is aimed at finalising the talks

This saga has been going on for months and months and months. Perhaps we are getting close to finalising talks. Or perhaps not.

The point for oil traders is the view that if an agreement can be reached then it eases access to oil markets for Iranian exports and thus there is greater supply and thus, at the margin, prices will fall. It’ll take time to ramp up Iranian oil exports of course. And, also of course, that fall in price is based on the ‘all else being equal’ assumption. Which, it never is. In this instance, for example, there may be a reduction in supply from OPEC+ if more Iranian oil enters the market.

Oil update:

oil chart 02 September 2022
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