Oil Rises After Washington Post Reports Iran Oil Sanctions to Tighten

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Eight nations will be allowed to import oil from Iran under new U.S. section rules against the country, but waivers will end for all others. The Washington Post reports the change. Oil is feeling pressure from the rumors. Crude rose 2.4% today to $65.51 a barrel.

The report said that U.S. allies South Korea, Japan and India will not be affected. That raises the question of how much the waivers really will hurt Iran because the level at which these nations use crude.

The Post reports:

The United States will allow eight countries to temporarily keep importing Iranian oil after sanctions are reimposed next week, when it will blacklist hundreds of companies and individuals, U.S. officials said Friday.

Secretary of State Mike Pompeo said the administration decided to grant the eight waivers on oil sanctions, which will be reimposed Monday, because those countries pledged to continue slashing their oil purchases from Iran. Six countries agreed to “greatly reduced” levels of oil purchases, he said, and two said they would soon end their imports of Iranian oil.

“Some of these will take a few months to get to zero,” he told reporters in a conference call on the reimposition of sanctions. “We will give them a little longer to wind down. Weeks.”

CNBC added:

Oil prices spiked by more than 3 percent on Monday — past highs not seen since November 2018 — after reports that Washington is set to announce that all buyers of Iranian oil will have to end imports, or be subject to U.S. sanctions.

Brent crude futures surged more than 3 percent to over $74 per barrel on Monday morning during Asia hours, while U.S. crude futures rose around 2.33 percent to $65.49 per barrel.

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