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Crude Oil Jumps More than 2% as US Ends Iran Sanction Waivers

April 22, 2019 at 11:18 by Vladimir Vyun

Futures for crude oil jumped more than 2% today on the news that the United States plan to end the Iran sanctions waivers. While the USA had sanctions against Iran due to its nuclear program, some countries were granted waivers, allowing them to trade with the Middle Eastern country. But Washington Post reported yesterday that Secretary of State Mike Pompeo will announce today that all waivers will end on May 2 and any country that continues to trade with Iran afterwards will itself face sanction from the USA.

The potentially negative side of the news is that global trade tensions will likely increase. Relations between the USA the biggest importers of Iranian oil, namely China and India, will most certainly deteriorate. Relations between the USA and the European Union will likely worsen as well because Brussels is seeking a way to trade with Iran bypassing sanctions from Washington.

Futures for delivery of WTI crude oil in May jumped 2.27% to $65.45 per barrel as of 10:54 GMT on NYMEX today. June contract for Brent crude surged 2.45% to $73.73 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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