Crude oil prices are rising after a State Department official told reporters Tuesday that the U.S. has no plans to issue waivers on sanctions to Iran’s oil customers and expects countries to stop imports by Nov. 4.
The U.S. expects all countries to cut oil imports from Iran to “zero” by November or risk sanctions cutting their access to U.S. markets and financial institutions, said a senior State Department official, who briefed reporters on the condition of anonymity.
He said U.S. officials are visiting European and Asian countries to warn them to cut off their oil imports from Iran. The U.S. benchmark crude oil price quickly topped $70 per barrel Tuesday for the first time since May, after news spread of the administration’s zero-tolerance approach to sanctions.
The reimposition of sanctions is a result of President Trump last month abandoning the Iran nuclear deal, in which Tehran agreed to constrain its nuclear program in exchange for restored business and financial ties to the world economy.
Energy experts have warned that oil prices would rise if Trump renews oil sanctions on Iran. OPEC agreed to boost oil production Friday to head off rising oil prices, as some key producers, such as Venezuela, Iran, and Libya, face output constraints.
Iran’s exports of crude oil and condensates have surged since sanctions were lifted in 2016. Most of Iran’s oil exports go to Asia, with China, India, South Korea, and Japan being the largest purchasers. China and India combined buy 60 percent of Iran’s total exports. The U.S. imports no Iranian crude.
