On Monday, the 22nd of April 2019, the US government had demanded all buyers of Iranian oil to step off of their purchases by May 1st or to face the consequences which could even involve potential sanctions, as a move to muffle Iran’s oil revenues in order to diminish its influence over the gulf and to bar it from manufacturing long-range ballistic missiles.
Followed by the reveal of the news, crude oil price across the world had been winding higher, while the US crude intermediate Texas had reached its six-month peak alongside UK crude in the wake of a potential supply crux.
Never the less, the meretricious move of Trump administration not to renew exempts granted last year was far intransigent than it was expected by multiple nations purchasing Iranian crude by averting US sanctions including China and India.
Besides, according to the spokesmen familiar with the discussion last week between the Trump Administration and other nations, some nations had been expecting to continue purchasing Iranian crude without facing US sanctions.
In point of fact, on last November, the Trump Administration had again imposed a sanction on exports of Iranian crude pulling out of a 2015 accord between Iran and six global powers in order to muddle-crash Tehran’s nuclear program, while Iranian President Rowhani had threatened to shut the Strait of Hormuz, one of the most critical sea passages accross the world.
While this report was being prepared, April 22nd, GMT. 18.00, the US crude was trading at $65.92 per barrel, while the UK crude rose to more than $74 per barrel, its highest level since last November.