The United States seems to declare on Monday that all buyers of Iranian oil must end their imports soon or face sanctions, a source familiar with the scenario told Reuters, provoking about a 3 per-cent rise in crude rates.
The source guaranteed a report by a Washington Post columnist that the administration will probably end the sanctions waivers it granted to some importers of Iranian oil late a year ago.Global benchmark Brent crude oil futures increased by by around 3.2 percent to $74.30 a barrel, the highest since Nov.1, in early Asian trading on Monday in response to needs of tightening supply.
US West Texas Intermediate futures climbed about 2.9 percent to $65.87 a barrel, its largest since Oct.30.US President Donald Trump has been very clear to his national security team over the past few weeks that he wants the waivers to conclude, and National Security Adviser John Bolton has been working the matter within the administration.
In November, the US reimposed sanctions on exports of Iranian oil after President Trump unilaterally drew out of a 2015 nuclear harmony between Iran and six world powers.Washington, however, permitted Iran’s eight major buyers of oil waivers to the sanctions that let them minimal purchases for six months.
They were China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.
But on Monday, Secretary of State Mike Pompeo will declare “that, as of May 2, the State Department will no longer grant sanctions waivers to any country which is presently importing Iranian crude or condensate,” the Post’s columnist Josh Rogin said in his report, citing two State Department authorities that he failed to name.
On April 17, Frank Fannon, U.S. Assistant Secretary of State for Power Resources, repeated the administration’s position that “our objective is to reach zero Iranian exports as soon as possible.”