US Threat Over Iran Pushes Oil Price Higher. The US does not want anyone to import Iranian oil from November 4. The news that there is no transitional period pushes the oil price higher, posted by Dawn News.
The US expects that oil imports from Iran will fall to zero in each country on 4 November. Otherwise, there will be sanctions. That is what a Foreign Affairs employee said. With that, the Americans are stricter than expected.
Buyers of Iranian oil had been counting on the fact that they could enjoy a transitional period in which they could look for new suppliers. This expectation was based on previous statements by President Donald Trump’s employees and the procedure under precedent Barack Obama.
“A transition period is not necessary. We ask other exporters in the Middle East to supply the oil market sufficiently. ‘ Last Friday, OPEC decided to increase daily production by 1 million barrels per day.
Iran has long opposed higher oil production because it makes the American sanctions against the country de facto possible, without disturbing the oil market. The sanctions are the result of the US decision to withdraw from the 2015 nuclear agreement with Iran.
In response to the American threat, the price of a barrel of Brent oil rises promptly by $ 1.5 to $ 76.5, the highest level in two weeks. “Traders are processing the news that they can not count on Iranian oil during the winter,” said an expert at Bloomberg.