Trump Signals He Will Submit Iran Deal to Congress, Sending Oil Market into Immediate Reaction

The market reacted immediately after President Donald Trump said he would send the agreement related to Iran to Congress. Investors were closely watching the possibility that the deal could affect oil supplies and sanctions.

Trump said the 6 month 16 day that the deal “says loud and clear” that Tehran will not possess nuclear weapons. On the same day, members of Congress said they were not properly informed about the contents of the deal.

Trump's remarks about submitting the deal came while Congress still did not know its contents. A majority of lawmakers were reportedly unable to confirm the specific provisions of the agreement document.

The crude oil market bet that Trump would ultimately back down, and prices fell accordingly. Meanwhile, some analysts continue to debate whether this issue represents a short-term shock to the energy market or a structural turning point.

Many G7 countries assessed that the conflict related to Iran is placing a burden on the economy. International financial flows and energy supply and demand have been identified as the main concerns.

Public discussion has also arisen over whether the war’s objectives will be achieved. The possibility remains that the release of related documents and the schedule for congressional review could determine the market’s direction going forward.