US President Trump is speaking to reporters at the NATO summit in Turkey and his comments were mostly just verbal attacks against Iran and European allies.

The markets went into risk-off and oil prices spiked when Trump said that the Memorandum of Understanding with Iran was over for him. He added that they are ‘sick people’ and that he doesn’t want to engage with them.

If things don’t de-escalate in the near future, it could become very ugly in the markets as inflation worries will return and the Fed will definitely hike exacerbating the negative sentiment.

We are already seeing a hawkish repricing across the board as oil prices are now 8% higher since yesterday.