On the surface, it seems that Iran’s recently elected President is more moderate and open to negotiation than his predecessor. Rouhani has repeatedly emphasised Iran’s desire to normalise relations with the West and even admitted in a CNN interview the existence of Holocaust, long been denied by Iran’s religious extremists. Whether he is politically influential enough and whether his policies will impact the financial markets remains to be seen. Skeptics would argue that logic and theocracies do not always go together and words do not always translate into definitive actions. Rouhani’s current promises and the short term drop of oil prices do not paint a full picture in this highly complex political and economic reality. Since the history of the financial markets teaches us that tensions and uncertainly in the Middle East without fail impact on the price of oil worldwide, should Rouhani’s words be taken with caution? Read more…