Oil prices hit their highest levels in months following Monday’s announcement that the U.S. was ending exemptions from sanctions for those countries that were still importing Iranian oil.
Secretary of State Mike Pompeo delivered the news, calling it “timely action to assure that global demand is met as all Iranian oil is removed from the market.”
West Texas Intermediate prices set at the Cushing hub immediately rose $1.52 or 2.4 percent t o $65.57 a barrel.
Pompeo’s announcement means five nations, China, India an U.S. treaty allies Japan, South Korea and Turkey will not see their sanctions waivers renewed when they expire May 2. The waivers had been in effect since last November when President Trump’s administration reimposed sanctions on Iran. He made the move after the U.S. pulled out of the 2015 nuclear deal that had been made by the Obama administration with Iran.
The waivers to the sanctions had been granted the five countries to give them time to end their purchases of oil from Iran.
Click here to read U.S announcement.