“will not attack Iran today”, says US President Donald Trump

Immediate military action against Iran has been ruled out by US President Donald Trump, who said “there will not be a strike today,” according to a report by Aljazeera news agency on Sunday.

With Iranian and Houthi threats against Americans in the Middle East continuing to mount, Trump had earlier indicated that Washington might need to “finish the job” or could secure an agreement with Tehran.

Miscalculations in launching the war have drawn the US into a “quagmire”, according to Iran’s parliament speaker, Mohammad Bagher Ghalibaf. He said Washington must now “take the necessary steps to extricate” itself.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Despite negotiations over the war appearing to have stalled for weeks, Iran’s Foreign Ministry spokesperson, Esmail Baghaei, said Tehran remains open to diplomacy. Messages are being conveyed to the US through intermediaries, he added.

WTI Oil: Key Questions Answered

What Defines WTI Oil?

Traded in international markets, WTI Oil is a variety of Crude Oil. WTI stands for West Texas Intermediate and, alongside Brent and Dubai Crude, is one of the three major types. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. This high-quality Oil is considered easy to refine. Produced in the United States, it is distributed through the Cushing hub, known as “The Pipeline Crossroads of the World”. WTI serves as an Oil market benchmark, with its price regularly cited in media coverage.

What Determines WTI Oil Prices?

Supply and demand underpin WTI Oil prices, as they do those of other assets. Stronger global growth can lift demand, while weaker growth can have the reverse effect. Supply disruptions caused by political instability, wars or sanctions can also affect prices. Another important influence is the policy decisions of OPEC, a grouping of major Oil-producing countries. Because Oil is traded mainly in US Dollars, movements in the currency also affect WTI Crude Oil prices: a weaker US Dollar can make Oil more affordable, while a stronger Dollar can do the opposite.

Why Do Inventory Figures Affect WTI Oil Prices?

WTI Oil prices respond to weekly Oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA), as stock changes reflect shifts in supply and demand. A decline in inventories can signal stronger demand and lift Oil prices. By contrast, rising inventories can point to greater supply and weigh on prices. The API releases its report every Tuesday, followed by the EIA the next day. The two sets of figures generally align, coming within 1% of each other 75% of the time. As the EIA is a government agency, its data is regarded as more reliable.

Why Do OPEC Decisions Matter for WTI Oil Prices?

At meetings held twice a year, the 12 Oil-producing nations that make up OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for member countries. These decisions frequently influence WTI Oil prices. Lower quotas can restrict supply and lift Oil prices, whereas an increase in OPEC production has the reverse effect. The wider OPEC+ grouping brings in ten additional non-OPEC members, with Russia the most notable among them.