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How U.S. Ending Iran Waivers Could Affect Oil Markets and Beyond

(Paratish Narayanan – Bloomberg)

Six months after the U.S. rocked oil markets by letting Iranian exports continue, its decision to end sanctions waivers that allowed shipments is also set to reverberate across the globe.

The U.S. is said to announce Monday morning in Washington that it won’t renew exemptions from its sanctions to buyers of Iranian crude after they expire on May 2. It marks a change in direction from November last year, when the Donald Trump administration granted waivers to eight importers as it sought to temper fuel prices ahead of American mid-term elections.

The move threatens to squeeze supplies further in a market that’s already facing supply disruptions from Venezuela to Libya and Nigeria, and extend this year’s rally in global benchmark Brent crude above US$70 a barrel. Prices are still below the four-year highs of over US$86 they hit in October before the U.S. issued its waivers. Click here to read more.