The decision by President Trump to exit the Iran nuclear deal originally brokered by President Obama is widely seen as a disastrous move. Its impact will surely be felt by the remaining participants in the arrangement, the UK, Germany, France and others. The economic hiccup caused by the sanctions are yet another reason why it will be difficult for the global stock markets to eclipse their all time highs. It also means that the US no longer can be trusted as a reliable partner in any such agreement. It could negatively impact the Korea peace negotiations, which have barely begun.
There will be a direct impact on various commercial deals made between Iran and companies in the US and the other signatories. Notably, Boeing may just have lost a 20 billion-dollar order in the process. In addition GE is expected lose big time and so will French air plane producer Air Bus. Overall, the impact on economies has not yet been felt, but it will be soon.
A hot war is imminent in the Middle East. Israel has already attacked Iranian installations in Syria and more is likely to come. The big issue is whether the US will be drawn into the conflict and whether this conflict will widen beyond the region.
Oddly enough, the price of crude oil on May 10 declined, but remained slightly above $70 per barrel. It remains to be seen where these prices are going. The big producers, such as Saudi Arabia and the UAE have said they are ready to boost production from current levels and US output is also rising. Consequently, there is little worry about much higher prices at the pump.