Trump’s ‘Anaconda Plan’ aims to economically pressure Iran through a naval blockade and sanctions. The market for Iranian oil sanction relief has collapsed, diminishing expectations for a quick agreement and lowering the chances of crude oil hitting an all-time high. Traders are highly reactive to any perceived policy shift, leading to market volatility.
Trump’s comments on the US-Iran ceasefire extension triggered market declines. Despite Pakistan’s mediation efforts, Trump’s skepticism suggests a potential shift in US policy, creating uncertainty. The market had been optimistic about an extension but is now facing increased volatility.