The president's announcement caused a drop in global oil prices.
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The price of Brent oil fell 2.4% after President Donald Trump's announcement that the United States plans to escort ships transiting the Strait of Hormuz. Crude oil fell to $105.55 a barrel, while S&P 500 index futures rose 0.1 percent in early trading.
In the same message where he announced the “Freedom Project”, Trump also described the negotiations with Tehran as “very positive” after he received the response from the Iranian regime to his latest proposal to end the war. These steps could pave the way for a possible agreement, although uncertainty about the conflict persists
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Today, in the early hours of the day, Iran said that it received the US response to its plan through Pakistani mediators and that it is reviewing it. The plan reiterated Tehran's previous demands, with a 30-day window to reach an agreement while Hormuz opened and the U.S. blockade on Iranian ports was lifted, something Trump continues to reject in public and in private
. The price of a barrel plummeted after Trump's announcement that the US will escort ships in the Strait of Hormuz
The market rebounds despite the war
“The devil is always in the details, but it's a positive sign, since it shows that both sides are willing to find common ground,” analyst Rodrigo Catril told Bloomberg about the peace talks between the two warring nations.
Despite the war in Iran, oil above $100 and a Federal Reserve chaired by Jerome Powell that refuses to lower rates, the upturn in the market has continued, suggesting that optimism and patience still prevail in the global context.
The S&P 500 ended April at highs, with nearly 81% of companies in the index exceeding first-quarter earnings estimates. Emerging market equities hit a new all-time high in late April, while an indicator of Asian equities has nearly recovered its losses caused by the war
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Last Friday, the US Treasury warned that any shipping operator that makes payments to Iran for transit through the Strait of Hormuz will be sanctioned. Trump has already said that he will not lift the blockade imposed on Iranian ports until a formal agreement is reached with Tehran, further strangling
the already battered Iranian economy. The price of a barrel plummeted after Trump's announcement that the US will escort ships in the Strait of Hormuz
