Former Shell Oil President John Hofmeister believes an exit from the Iran nuclear deal carries long-term implications for the price of oil.
President Donald Trump announced on Tuesday that the U.S. will withdraw from the Iran nuclear deal and reinstated sanctions.
Before the announcement, Hofmeister told FOX Business’ Charles Payne on “Varney & Co.” on Tuesday that such a decision would put Tehran back in the “isolation chamber” and allow it to “play more havoc within the region,” ultimately affecting the price of oil.
"That gives them more hegemony in the region where they can, as we know, become a real trouble maker, and Lord knows what that will do to the geopolitical issues,” Hofmeister said.
Oil prices fell on Tuesday after Trump avoided immediate sanctions.
Hofmeister said prices will continue to rise slowly over the course of the summer.