The government of the Islamic Republic of Iran is considering plans immediately to stop exporting oil to “some” countries. The action would be a direct response to the European Union’s recent decision to ban imports of Iranian oil to the EU.
In reality, the move is meaningless. Iran needs to sell its oil. There is at least one willing buyer — China. Unless China decides to increase it’s consumption by the total amount of oil that Iran will not be sending to Europe, then the Europeans will be able to get supplies from someplace else.
On electronic markets, both WTI and Brent crudes are lower this morning.