Iran sanctions: Middle East stock crash wipes £27bn off markets as Tehran enters oil war

Prospect of the Islamic Republic pumping an additional 500,000 barrels a day sends stock markets in Dubai and Saudi Arabia into tailspin

Stock markets across the Middle East saw more than £27bn wiped off their value as the lifting of economic sanctions against Iran threatened to unleash a fresh wave of oil onto global markets that are already drowning in excess supply.

All seven stock markets in the Gulf states tumbled as panic gripped traders. London shares are now braced for a second wave of crisis to hit when they open on Monday morning after contagion from China sent the FTSE 100 to its worst start in history last week.

Dubai's DFM General Index closed down 4.65pc to 2,684.9, while Saudi Arabia's Tadawul All Share Index, the largest Arab market, collapsed by 7pc intraday, before recovering to end down 5.44pc at 5,520.41, its lowest level in almost five years.

Oil prices fell below $30 for the third time last week as traders prepared for the prospect of Iranian oil flooding global markets.
The Islamic Republic has vowed to return its oil production to pre-sanction levels that stood above 3m barrels a day.

“The oil ministry, by ordering companies to boost production and oil terminals to be ready, kicked off today the plan to increase Iran’s crude exports by 500,000 barrels,” the official Islamic Republic News Agency reported on Sunday, citing Amir Hossein Zamaninia, deputy oil minister.
Fears that the Islamic Republic could quickly ramp up production sent Brent crude falling by 3.3pc to $29.43 on Friday - matching lows last seen in 2004.

West Texas Intermediate also slipped back to $29.60, a decline of 4.5pc.
Standard Chartered became the latest bank to raise fears over the oil price by downgrading its outlook to $10, following the likes of Goldman Sachs, RBS and Morgan Stanley.

www.telegraph.co.uk...

Here it comes folks, the oil markets are collapsing due to the Iran sanctions.

Think gas is cheap, just wait a couple of more days, and gas prices may go to a $1 a gallon.

So ATS how do you think this is going to effect our economy in the United States?

a reply to: Informer1958

Oil will drop to $10.00 a barrel, then super hyperinflation, and....POP! Global "reset" an our lives abruptly change.

This is bigger than the US.

a reply to: NewzNose

I agree.

Is this what the NWO wanted to happened? When Obama lifted Iran sanctions, I knew there was going to be a serious problem, however I didn't see this coming that fast.

a reply to: Informer1958

You mean when six countries came together and decided to lift sanctions from Iran.

This wasn't just Obama.

Just shows how much of a racket the oil market has been. The wholesale ransack of economies will continue though.

It feels like we are living in a shaken can of pop that's about to opened.

Oil prices are effecting inflation, which in turn is helping most countries as people feel they have more money in their pocket. Whatever happened to Peak Oil?

There must be a new technology on the horizon or I would imagine the markets would be reacting strongly.

a reply to: Sremmos80

This wasn't just Obama.

I am well aware of that and so is everyone else. Your point?

a reply to: Informer1958

That seems like an attempted derail to me.

a reply to: Cobaltic1978

Oil prices are effecting inflation, which in turn is helping most countries as people feel they have more money in their pocket. Whatever happened to Peak Oil?

I will agree yes for our gas prices, but no to food prices as I have been watching the cost of food going through the roof lately.

a reply to: Informer1958

Damn, did anyone see this coming as a result of the Iranian nuclear deal? Again, good job Obama!

You know Saudi Arabia is pissed!

a reply to: onequestion

There must be a new technology on the horizon or I would imagine the markets would be reacting strongly.

There are many new technologies on the markets today, perhaps this will help the push. I don't know. It is going to interesting to see what becomes of this in a few days.

Oil, sooner or later will lose it's worth almost completely.

Lockheed says makes breakthrough on Fusion Energy project

WASHINGTON (Reuters): Lockheed Martin Corp said on Wednesday it had made a technological breakthrough in developing a power source based on nuclear fusion, and the first reactors, small enough to fit on the back of a truck, could be ready for use in a decade.

a reply to: Informer1958

First of all, I understand that people who work for oil companies are in a tough spot. They have my sympathy.


Here's my take on this:

Interventionist government policies create boom in price of commodity. ✅

Market takes one step forward. ✅

Otherwise sensible investors follow trend redirecting capital away from constructively diverse investments into boom. ✅

Reality reasserts itself resulting in bust. ✅

Capital consumption occurs resulting in overall damage from malinvestment. ✅

Otherwise constructive investments permanently lose access to now evaporated capital. ✅

Market takes two steps back. ✅


While we can't say we had no idea this would happen, we have had far too many examples to claim surprise. Be thankful we aren't a state capitalism like China who had a basket full of eggs.

Why are those who hate oil companies expressing disappointment here?

From where I am standing, this is fantastic for transportation, polymer manufacturers and individual people who want to heat their homes for their families.

Like real estate speculators, poor decisions have consequences.

If we want to pick a fall guy here it is the initiator of the fanatical overvaluation of the commodity, interventionist government policy.

Any questions?

a reply to: greencmp

If we want to pick a fall guy here it is the initiator of the fanatical overvaluation of the commodity, interventionist government policy.

Very good point, I have to agree.

Do you think the financial experts saw this coming?

originally posted by: Informer1958
a reply to: greencmp

If we want to pick a fall guy here it is the initiator of the fanatical overvaluation of the commodity, interventionist government policy.

Very good point, I have to agree.

Do you think the financial experts saw this coming?

What financial experts?

I should clarify that economists see these things as the natural result of interventionist policies.

They always warn against it but, they aren't financial experts.

a reply to: Informer1958

Fast?

People have been screaming from the rooftops for awhile now.

I became enlightened only a year ago, myself.

It will be much worse after the election.

And, if you think this is big.....wait for the bigger "tah-dah" to come.

a reply to: greencmp

I am talking about financial experts who does monthly reports for investors on Wall Street.

Were they aware there was going to be a problem with oil prices falling this fast? I am not an expert in this, so I just assume you were.

This is likely why we've been told that oil could go as low as $10/barrel.

originally posted by: Informer1958
a reply to: greencmp

I am talking about financial experts who does monthly reports for investors on Wall Street.

Were they aware there was going to be a problem with oil prices falling this fast? I am not an expert in this, so I just assume you were.

I understand, I added some clarity above.

The lesson is for government to not interfere with markets.