Business Insider Edition

Oil jumps to nearly 6-month high after the Trump administration announces plans to send Iranian exports to zero

Gina Heeb , Business Insider US
 Apr 22, 2019, 05:47 PM
SOUTHAMPTON, ENGLAND - FEBRUARY 10: A general view
(Photo by Matthew Horwood/Getty Images)
  • Oil jumped to its highest since November 1 on Monday.
  • The Trump administration said that it would end sanctions waivers in May that had previously allowed eight countries to purchase crude from Iran.
  • The move aims to send Iranian energy exports to zero, which could pressure global supply.
  • Watch oil trade live.

Oil prices jumped on Monday after the US announced plans to ratchet up energy sanctions against Iran.

The Trump administration said that it would end sanctions waivers in May that had previously allowed eight countries to purchase crude from Iran, a move that aims to send energy shipments from what had been the fourth-largest OPEC producer to zero.

The international benchmark Brent jumped 2.5% to $73.77 (R1,045) per barrel, the highest level since November 1. West Texas Intermediate rose 2.1% to $65.39 (R926).

Trump withdrew the US from the Iran nuclear deal last year, calling on buyers to cut off oil imports from the Islamic Republic. The administration granted several countries - including China, Turkey, and India - temporary waivers to avoid price shocks.

The move was part of the Trump administration's maximum-pressure campaign against Iran. The president designated the Islamic Revolutionary Guard Corps as a terrorist organization earlier this month, the first time the US has named part of a foreign government as such.

The State Department last year created a list of demands Iran would need to meet for sanctions to be lifted, including completely halting its nuclear and ballistic missile program and ending military engagement in Syria and Yemen.

Bloomberg reported Iran has threatened to retaliate against sanctions by closing the Strait of Hormuz, a crucial passageway for Persian Gulf oil.

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