Oil price rally is about much more than just Syria crisis, analysts say

World leaders continue to weigh up military action in response to a suspected poison gas attack in Syria over the weekend. The prospect of a military escalation in Syria comes after members of the United Nations Security Council failed to agree on a concerted international response on Tuesday.

Shortly after the alleged chemical attack on the last rebel-held town in the Eastern Ghouta region of Syria, President Donald Trump blamed Russia President Vladimir Putin and Iran for their respective roles in providing support to the Syrian government.

Rescue workers and medics working in Syria said more than 40 people were killed after bombs filled with toxic chemicals were dropped by government forces in the war-torn country. Moscow, Tehran and Damascus have all denied responsibility for the attack.

In a tweet on Sunday, Trump said those deemed responsible should expect to pay a “big price.” He has since sought to dial back threats of military action, saying missile strikes into Syria may not happen soon.

Energy Aspects’ Mallinson said Trump’s reference to Iran could be viewed as further evidence the U.S. president is not likely to renew the Iranian nuclear agreement.

“It’s another signal that he’s probably minded not to renew those sanctions next month,” he added.

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