On Wednesday, the 8th of May 2019, a US special representative for Iran, Brain hook said that the United States would not be granting any more waivers to any countries which might allow them to purchase Iranian crude without facing steep US sanctions, and followed by the release of the announcement, both US and UK crude had soared on Wednesday (May 8th), after posting a weekly plunge last week.
Besides, a surprising decline of US oil rigs and a regulatory block on mining more US crudes over the north-eastern shores last week had contribute to the upsurge. While this report was being prepared, May 8th, GMT. 18.00, the US crude was trading at $62.11 per barrel, up by 0.71 percent.
On April 25th, United States had ended all waivers on Iranian crude, which had been allowing as many as eight countries to purchase Iranian oil and Washington had been quoted saying following the sanction that any countries purchasing Iranian crude after May 1st would face consequence, however, major Iranian crude oil buyers from China and India would unlikely to respond on US call of sanction waiver and more likely to keep purchasing Iranian crude at a steep discount.
Nevertheless, adding further strains over the sensitive issue, Iran had already threatened to block the strait of Hormuz controlled by Iran and US had deployed a naval air-ship for the Strait of Hormuz which would be reaching the Iranian passage channeling more than 35 percent of crude oil shipments within next week.
Besides, Iranian oil minister had also quoted saying earlier this week that the country had been selling its heavy to medium crude to ‘gray markets’, though he denied to disclose the details.