After suffering losses over the past few weeks, crude oil moved towards growth once again today. The upward push came after the United States imposed sanctions on Iran this week, since the nuclear deal with Iran was dissolved by President Trump a few months ago. It is expected that Iran will have trouble with their oil exports from now on, which could decrease supply globally, allowing oil prices to increase.
The Brent crude reached the level of $72.42 per barrel, while the US Light crude was at $67.02.
Currently the exact impact of Trump’s sanctions on Iranian oil is unclear. The United States are yet to convince other countries to stop buying Iranian oil. Considering that European and Asian allies of the United States were against the dissolution of the nuclear deal, they might end up disregarding the American request, which would leave Iranian exports more or less unchanged.
Moreover, even if countries do stop importing oil from Iran, thanks to the trade war between the US and China oil demand is decreasing anyway, so the lower supply and lower demand might cancel each other out.
