Trump sees Iran war ending after the U.S. midterm elections. He spoke in Dublin on Saturday. He also said Iran must not get nuclear weapons.
Why Trump sees Iran war ending matters
Trump said oil prices “will come tumbling down” after the war. However, Tehran is not ready for talks without conditions. Iranian lawmaker Ebrahim Azizi said talks remain futile. He said Washington refuses Iran’s demands. Therefore, both sides remain far apart.
Iran has not given up on diplomacy. Nevertheless, it rejects unconditional talks.
Saudi pipeline attack raises oil supply concerns
Trump’s remarks followed a drone attack on Saudi Arabia. Consequently, Saudi Arabia shut its East-West oil pipeline. The 1200-kilometer line carries crude to the Red Sea. It avoids the Strait of Hormuz.
The pipeline recently pumped 4 million to 5 million barrels per day. That equals about 4% to 5% of global oil supply. Iraq confirmed the attack came from its territory. However, no group claimed responsibility. Still, Trump claimed Iran was “probably” to blame. He offered no proof.
Red Sea pressure rises
Pressure also rose around the Red Sea. Iran-backed Houthi forces expanded control near Bab el-Mandeb. Therefore, Saudi Arabia has fewer options. Hormuz traffic restrictions continue.
Brent crude closed above $104 on Friday. It gained more than 8% for the week.
Bitcoin trades sideways
War concerns surged. Nevertheless, Bitcoin moved sideways. It traded around $77,148 at press time. It was up 0.53%. Earlier in the week, it moved above $80,000.
Ethereum also did not react to Trump’s announcement. It jumped above $2,500 in the last 24 hours. In addition, XRP had a bullish day. It cleared resistance at $1.35.