![]() ![]() Within weeks, between 1.1 million and 1.3 million barrels of daily Iranian exports will be taken off the market, FGE estimates. “This news is an extremely hard line from the US,” analysts at consulting firm Facts Global Energy wrote in a report. TPG/Getty ImagesĬhina buys a lot of Iranian oil, and it's not happy at all with US sanctions Rather than give India, China and other buyers of Iran’s oil time to find alternatives, the Trump administration announced that sanctions waivers would go away by May 2.Ĭhina is the world's biggest importer of Iranian oil. “The timing of this halt is much more sudden than we and consensus had expected,” Goldman Sachs strategists led by Damien Courvalin wrote to clients. ![]() Investors, aware of Trump’s desire to prevent gasoline prices from hurting the economy, were caught off guard by the Iran move. The national average is now $2.86 a gallon, up from $2.63 a month ago, according to AAA. Gasoline prices continue to creep higher as well. Both have rebounded dramatically from last year’s bear markets. Brent crude, the global benchmark, is now above $74 a barrel. US oil prices climbed above $66 a barrel for the first time since last fall. Trump’s Iran decision represents “the ultimate high wire act for oil prices,” Croft warned.Įnergy markets wasted little time responding. “All of these geopolitical stories could present a cruel summer scenario for President Trump as he seeks to keep oil prices in check,” Helima Croft, global head of commodity strategy at RBC Capital Markets, wrote to clients this week. The deepening Iran sanctions, on top of separate penalties on crisis-stricken Venezuela and violence in Libya, are causing concern about once-plentiful oil supplies. Washington’s crackdown on Iran is just the latest global flashpoint rippling through increasingly tight oil markets.Įven oil bulls on Wall Street were surprised when President Donald Trump vowed this week to wipe out Iran’s oil exports. ![]()
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