GUIDANCE

The Ripple Effects of the U.S. Move to Stop Oil Flows From Iran

Apr 22, 2019 | 20:09 GMT

U.S. Secretary of State Mike Pompeo speaks during a press conference at the U.S. Department of State in Washington on April 22, 2019, in which he announced that the United States would no longer grant exemptions to Iran’s oil customers.
U.S. Secretary of State Mike Pompeo speaks during a press conference at the U.S. Department of State in Washington on April 22, 2019, in which he announced that the United States would no longer grant exemptions to Iran’s oil customers. Washington is taking a tougher line on Tehran’s oil exports, but that could drive up oil prices and provoke an angry response from Iran.

(ANDREW CABALLERO-REYNOLDS/AFP/Getty Images)

The United States is ratcheting up its campaign against Iran with an ambitious new target: all of the Islamic republic's oil exports. On April 22, the White House announced it would not renew sanctions waivers for Iran's oil customers after the current ones expire on May 2, adding that Saudi Arabia and the United Arab Emirates would help stabilize the market. Already, the price of light sweet crude benchmark Brent has spiked by 3 percent, briefly touching $74 per barrel -- the highest since October 2018. Needless to say, the United States' tough line will cause ripples around the world. ...

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