Trump UN Speech: US President Signals Potential Iran Deal After Midterms, But Also Urges Nations For Tehran’s Complete Economic Isolation

• Oil prices extended their decline Tuesday, with WTI and Brent both falling for a fifth consecutive session.
• U.S. equities gave back earlier gains, with SPY trading flat and DIA lower in midday trading.
• The prospect of renewed U.S.-Iran talks could put further focus on crude prices, shipping through the Strait of Hormuz, and the broader economic impact of the conflict.

President Donald Trump said Tuesday that the U.S. could reach a deal with Iran after the midterm elections, while urging countries around the world to join Washington in economically isolating Tehran and warned that he faces a choice between a negotiated settlement and destroying the Islamic Republic.

“I believe we’ll make a deal right after the election because it doesn’t make sense for them not to,” Trump said during his address to the United Nations General Assembly.

Trump also called on other nations to join the U.S. campaign to isolate Iran economically until Tehran stops attacks on commercial shipping, abandons its nuclear ambitions and ends its support for militant groups.

“I call on all nations to join us in enforcing the complete economic isolation of Iran,” Trump said.

U.S. equities shed earlier gains in midday trade on Tuesday. The SPDR S&P 500 ETF (SPY) traded flat, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.42%, and the Nasdaq-100-tracking Invesco QQQ Trust (QQQ) moved 0.44% higher. Retail sentiment around SPY on Stocktwits trended in ‘neutral’ territory over the past day.

Trump Puts Deal Or Destruction On The Table

Trump framed the potential negotiations as a choice between allowing Iran to rebuild and taking further military action against the regime.

“I have a big decision to make,” Trump said, asking whether a deal could allow Iran to “rebuild and create a far greater country than it ever was before” or whether the U.S. should “annihilate the Islamic Republic.”

The remarks marked a continuation of Trump's pressure campaign against Tehran, which has combined military action with efforts to cut Iran off from international economic ties. 

Trump Points To Venezuela As Example

Trump also pointed to U.S. actions in Venezuela as evidence that Washington would no longer tolerate what he described as threats to American interests. “Our actions in Venezuela are proof that the US will no longer permit threats to America,” Trump said.

The comments come amid signs that Washington and Tehran could reopen diplomatic channels. However, no direct meeting between Trump and Iranian President Masoud Pezeshkian was scheduled at the UN.

Oil prices have already started to reflect hopes for a diplomatic breakthrough after reports suggested that Iran has offered to reopen the Strait of Hormuz within seven days. 

WTI futures expiring in October fell for a fifth day on Tuesday, down 0.5% at the time of writing. Brent crude futures expiring November followed a similar trajectory, down 0.4% at the time of writing. The United States Oil Fund (USO) fell over 1% in midday trade, with retail sentiment on Stocktwits around the ETF turning ‘bearish’ from the ‘neutral’ zone over the past day.

Read also: SOFI Stock Rises After $25B Card Program Moves To Stablecoin Settlement On Mastercard Network

For updates and corrections, email newsroom[at]stocktwits[dot]com.