Trump says U.S. and Iran getting along very well as geopolitical tensions ease

Key Facts

In a shift reflecting an improvement in diplomatic tone, U.S. President Donald Trump stated that the United States and Iran are getting along very well, according to Reuters. The remarks come amid signs of easing geopolitical tensions that have weighed on global oil markets in recent months. The statement coincided with record oil flows through the Strait of Hormuz, reinforcing the de-escalation narrative.

Trump's remarks follow a period of heightened tensions between the two countries, with mutual threats and limited military operations. However, recent indicators point to lower geopolitical risk, as risk premiums in oil prices have declined. Strong U.S. economic data, with GDP growth revised up to 2.1% for Q1 (data as of June 25), supports energy demand and provides a stable backdrop.

Investors are closely watching U.S.-Iran relations, particularly given possible talks on Iran's nuclear program. Markets will focus on any tangible policy shift toward sanctions relief, which could boost oil supplies. Upcoming U.S. employment data next week will also be in focus, potentially influencing oil demand expectations.