Trump’s Iran decision may hurt Iran but look at who does it helps?
Saudi Arabia and Russia! After the announcement of the US breaking its nuclear deal with Iran, Boeing lost its contract to build 90 planes. Who won?
Likely Russia pr maybe China won the air deal. Airbus is also likely blocked by Trump’s sanctions from sales to Iran! Russia is the only vendor left that sells the planes Iran needs … except China. Working with Russia, China is now producing its own version of a competitor for the 737.
Worse, look at the price of oil. U.S. crude CLcv1 rose $1.95 to $71.01 per barrel and Brent LCOcv1 was last at $77.09, up $2.24. These prices herald back to a period of hugely expensive gasoline, diesel and heating fuel in the US .. more than compensating for any benefit the average tax payer got from Trump’s upper class tax cuts.
The biggest winners? Who has the biggest oil reserves? Who is most dependent on selling oil? Whose national wealth is dependent on share prices in oil stocks? Saudi Arabia and Russia! Long after we deplete America’s reserves and are oil poor, these reserves will remain. Good investment hunh?
Look at this from a European or a Chinese point of view. Both Europe and China are already oil poor. Where are they going to buy their energy? For all the fracking and other anti environmentalist efforts by Trump, our reserves are low in the long run and most of our energy is sold here. Europe and China need Russia and the Saudis. The energy sector in equity markets rallied, helping lift European stocks, a gauge of world equity performance and the broad U.S. market on Wall Street.
“It’s the clear leader today. It’s overwhelming almost all the other sectors in terms of its impact on today’s market action,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.
Exxon Mobil (XOM.N) rose 1.65 percent, Chevron (CVX.N) gained 1.36 percent, Royal Dutch Shell [RDSb.L] rose 3.38 percent and BP [BP.L] rose 3.92 percent.