Trump Inks High-Stakes Deals in Middle East

Key highlights:

– Although Trump’s recent Middle East visit generated optimistic headlines promising substantial deals, critical details regarding timelines and tangible impacts on the U.S. economy and the Middle East remain unknown.

– The visit did not yield groundbreaking new agreements, as U.S. companies already have a longstanding presence in the region. Instead, it reaffirmed established U.S. foreign policy, reflecting deepening and long-term strategic relationships in the Middle East.

– President Trump offered Iran two options: either a new nuclear deal or maximum pressure. Without a deal, Iranian exports will suffer but unlikely to be reduced to zero.

– A potential loss of Iranian oil is unlikely to unsettle the market, at a time when demand is not booming amid a moderating economic momentum while supply growth remains strong.