Oil prices highest in years as Iran sanctions loom

Oil Prices Reach Highest Since November 2014 On Venezuela, Iran Worries

Oil Prices Reach Highest Since November 2014 On Venezuela, Iran Worries

China regularly purchased crude oil from Iran, even when the country was still under sanctions.

Iran had been able to safeguard its oil industry against such threats over the past few years, Zangeneh was quoted as saying by Xinhua news agency.

THE world's major powers were nearly unanimous in their condemnation of Donald Trump's scrapping of USA support for the Iran nuclear deal.

When asked if the two countries will go back to the earlier banking arrangement for buying natural gas and oil, Teotia said the Rupee-Riyal arrangement was never terminated.

The United States will likely re-impose sanctions against Iran after 180 days unless some other agreement is reached.

The administration's goal is to impose tough sanctions that will prompt Iran to re-negotiate the Iran nuclear deal, he said.

Trump's decision to immediately reimpose sanctions on Iran could impact their ability to export oil.

Uncertainty is hanging over the future of the Iran nuclear deal following the USA decision to withdraw.

Analysts warned that the deepening economic crisis in major oil exporter Venezuela threatened to further crimp its production and exports.

Other nations that do business with Iran also could face USA sanctions.

Kloza says the biggest reason prices are up now is that supply and demand are tightening.

Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new US sanctions range from as little as 200,000 bpd to as much as 1 million bpd, with most impact from 2019 as sanctions take time to impose.

"The way they are employed best", Peek said, "is through a constant iterative process where we engage those countries, we prod them in certain ways, cajole them in others, and gradually we reduce the amount of investment going into Iran".

While the sanctions have had an immediate impact on the global crude oil market, the fallout is expected to be wider impacting several non-oil businesses.

After sanctions were eased as part of the nuclear agreement, Iran ramped up production to about 3.8 million barrels a day. Israel said it conducted the biggest raid in at least three decades at Iran's military facilities inside Syria.

Global benchmark Brent crude climbed as high as $77.97 per barrel on Thursday, while American benchmark crude reached as much as $71.88 a barrel.

While Peek did not detail the nature of the coordination, Trump spoke with Prime Minister Benjamin Netanyahu numerous times in recent months and cited the premier's presentation of documents "conclusively showing" Iran's history of pursuing nuclear weapons in his speech Tuesday announcing he would leave the 2015 accord.

To pressure allies, the USA intends to apply "secondary sanctions" on non-American firms that do business with Iran. "They are very strong sanctions", Mnuchin said.

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