Oil finds support after Trump move

The United States has formally canceled the previous exception to eight oil importing countries from Iran. This is yet another move by the Trump administration to deprive Iran of oil revenues.

Trump allowed a grace period of eight states to continue to import oil from Iran within 180 days, despite the sanctions imposed. The deadline for considering this exception was May 2nd.

"The Trump administration and our allies are determined to maintain and increase their economic pressure on Iran's regime, thereby destabilizing the activity that threatens the US, our partners and allies, and security in the Middle East." - announced the White House.

China, India and Turkey were among the top clients of Iran, with countries expecting the exception to be extended for them. It was not immediately clear whether all imports of Iranian oil would be subject to sanctions after the deadline or whether Trump would allow an additional period of free import.

Pompeo said the United States has firmly and clearly stated to Iranian partners that sanctions will be implemented but did not rule out the possibility of "sudden" additions to existing restrictions. Pompeo also said the Trump Administration's goal was to deprive Iran of funds coming from oil trade to support the expansion policy in the Middle East. Since the beginning of the sanctions, Iran has suffered losses of more than $ 10 billion.

China has said it does not support this move in the US, with relations between China and Iran open, transparent and according to trade and local laws. As such, relations between the two countries must be respected.

The oil market has shrunk considerably after the sanctions applied to Venezuela and Iran, which led to a rise in the price of WTI and BRENT. The market is also closely following developments in Libya.

The uncertainty about sanctions and Libya also contributed to WTI's rise to $ 65.70 a barrel, while BRENT jumped to $ 73.56. Detaining the negative foundation will only contribute to fresh increases in the prices of the two oil varieties.

Source: The Wall Street Journal

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