Donald Trump’s demand for US control of Iran’s nuclear material has significantly reduced the prospects of a nuclear deal by April 30th, causing market odds to plummet. Traders are reacting sharply to the new developments due to the thin liquidity in the market. The responses from Oman and China will be crucial in shaping the negotiations.
The US sanctions on China’s Hengli Petrochemical are causing disruption to supplies for numerous smaller Chinese refiners, highlighting the broader impact of US efforts to pressure Iran. This move is seen as a bargaining chip ahead of President Trump’s upcoming visit to Beijing, given stalled negotiations on the Iran nuclear deal. Hengli, a major Chinese refiner, has historically sourced oil from Iran for product production.