Trump says no immediate plan to strike Iran as Netanyahu hints at attack this week

Trump’s remarks could take some heat out of crude, as they reduce the near-term chance of a fresh US-led escalation that markets had begun to price after Netanyahu’s hints. Any relief is likely to be limited, because oil’s risk premium rests on the Strait of Hormuz, where Iranian attacks, the US blockade of Iranian ports and Monday’s limited US strikes keep supply risk live. The bigger swing factor for oil is whether the Qatari-mediated talks produce a Hormuz deal, which would ease shipping risk far more than any single comment from Washington. A divergence between Trump and Netanyahu also leaves open the risk of Israeli action without full US backing, which would likely push prices sharply higher.If Trump is planning strikes he is doing well to keep his mouth shut about it. -- Trump is in no hurry to escalate with Iran, but Netanyahu is, and oil markets will be watching which of them sets the timetable.Summary:Trump said the US has no immediate plan to strike Iran, according to the FTHe said the US appeared to be getting everything it wanted from the stand-offAsked about Netanyahu’s hints of an attack this week, he said the US was ready but there may be no needNetanyahu has been pressing for new strikes after the US midterms, AP reportedUS forces carried out limited, unannounced strikes near the Strait of Hormuz on MondayQatari-mediated talks on a Hormuz and port blockade framework continue this week US President Donald Trump said the United States has no immediate plan to strike Iran, according to the Financial Times. He signalled he is comfortable with the current stand-off even as Israel’s prime minister hints at military action later this week.Trump said Washington appeared to be getting everything it wanted from the situation. He was asked about strong suggestions from Israeli Prime Minister Benjamin Netanyahu that an attack could come within days. Trump replied that the US was fully ready to act if needed, but that there might be no reason to do so.The comments point to a gap between Washington and Israel. Netanyahu has been pressing Trump to launch a new wave of strikes after the US midterm elections, which take place on Tuesday, according to officials cited by the Associated Press. Those officials suggested a return to full-scale war could help Netanyahu rebuild a governing coalition after he and his allies lost their parliamentary majority. Trump did not commit to strikes during a call with Netanyahu at the weekend.Trump’s remarks do not mean US military activity has stopped. US forces carried out limited strikes on Monday against Iranians who had fired missiles at American forces in the Strait of Hormuz, the AP reported. Iranian state media reported explosions on islands in the strait and near the port of Bandar Abbas. The US did not publicly announce the operation.Diplomacy is also continuing. Qatari mediators held two rounds of talks with Iranian officials last week, with more planned this week. A framework under discussion would see Iran halt attacks in the Strait of Hormuz in exchange for the US lifting its blockade of Iranian ports. Iran is seeking guarantees that Washington would honour any agreement.The conflict began on 28 February, when US and Israeli strikes killed Iran’s then supreme leader. His successor, Mojtaba Khamenei, has reportedly ordered forces to respond to any threat without geographic limits. That stance leaves the risk of escalation high whatever Washington’s current intentions. This article was written by Eamonn Sheridan at investinglive.com.