Uncertainty extends as Iran denies Ghalibaf resigned to negotiations team
Headlines indicating that Iranian Parliament speaker Mohammad Bagher Ghalibaf has resigned from the negotiating team, according to Israel N12 News, spurred risk aversion and sent Crude Oil prices sharply up in the American session on Thursday. The US Dollar (USD) also strengthened with the headline, hinting at diluting odds for a deal between the United States (US) and Iran.
Nevertheless, different Iranian journalists have rushed to deny the headlines, though X. Mohammad Ghaderi posted:
The ridiculous news from #Israel's Channel 12 that @mb_ghalibaf has resigned from the #Iran's negotiating team, which was also republished by Al Arabiya, is completely false."
Meanwhile, US President Donald Trump stated through Truth Social: "I have all the time in the World, but Iran doesn’t — The clock is ticking!" Earlier in the day, Trump claimed that "Iran is having a very hard time figuring out who their leader is!" hinting at some governmental divergences in the Persian Gulf country.
The latest headlines triggered Iran's president, Masoud Pezeshkian, to answer, who stated that "In Iran, there are no hardliners or moderates. We are all Iranians and revolutionaries. With ironclad unity of nation and state and obedience to the Supreme Leader, we will make the aggressor regret. One God, one nation, one leader, one path; victory for Iran, dearer than life."
Market reaction
Uncertainty maintains the US Dollar bid across the FX board, while West Texas Intermediate holds on to intraday gains and trades at around $94.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.