Iran sanctions power crude oil to 5-month highs

Omkar Godbole FXStreet Contributor

Oil prices jumped on Monday on a report that the US is likely to ask all importers of Iranian oil to end their purchases.

Brent oil added 75 cents or 1 percent to $72.68 per barrel, the highest level since November 2018.

The US, which reimposed sanctions on Iran’s energy sector after unilaterally pulling out of a 2015 nuclear accord, now reportedly wants to force Iranian oil exports to zero/

The world’s largest economy will likely announce later today that all importers of Iranian crude will have to end their purchases shortly or be ready to face US sanctions, according to Washington Post.

That is widely seen exacerbating supply concerns. Hence, the black gold may extend gains during the day ahead, weakening currencies of the oil importing current account deficit economies like India. The Canadian dollar could also find takers amid oil rally.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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