One of the biggest risks cited frequently by Goldman to its bullish oil case, was that the Iran nuclear deal would finally be signed, allowing several more million barrels of oil to hit the global market every day (even though Iran is already selling most of its oil products to China, just not strictly speaking legally).
Well, the reason why oil has slumped this afternoon is because Iran's top nuclear negotiator, Ali Bagheri Kani said on Twitter on Wednesday that "after weeks of intensive talks, we are closer than ever to an agreement; nothing is agreed until everything is agreed, though."
Also on Wednesday, France said a decision on salvaging Iran's 2015 nuclear deal with world powers was just days away and it was now up to Tehran to make the political choice.
Indirect talks between Iran and the United States on reviving the tattered agreement resumed last week after a 10-day hiatus.
Many have speculated that the Biden administration, which has seen its approval rating plummet as a result of surging inflation and near-record high gas prices, will ram through any deal with Iran in hopes of unlocking the country's oil output and depressing oil prices...
Biden will concede to any Iran Nuclear Deal demands if it means even slightly lower gasoline prices— zerohedge (@zerohedge) February 8, 2022
... and it now appears that that is the case, although to be sure this is not the first time we have heard that the US and Iran are "this close" to reaching a deal. In any case, oil has plunged to session lows, tumbling $4 from session highs.