Iranian oil sanctions loom as US gears up for ‘toughest sanctions regime ever imposed’
Politicians and businesses are bracing themselves for new US sanctions on Iranian oil that are set to come into effect on Monday, in what the White House has branded as its "toughest ever" measures imposed on Tehran.
The US is planning to reinstate all US sanctions on Iran removed under the 2015 nuclear deal, in a move that has sent geopolitical shockwaves throughout the world.
Crude prices hit a three-month low yesterday after the White House said that it will be allowing eight countries to import limited amounts of Iranian oil in a bid to keep markets stable.
Fears of supply shortages simmered down as US Secretary of State Mike Pompeo said that Washington was granting eight wavers.
The move follows on from months of volatility within the oil markets, which has mounted on the back of mounting tensions between President Rouhani and President Trump.
Crude prices fell back to a three-month low yesterday following the comments, although the White House said has since reiterated its stance that the sanctions will be the toughest ever imposed on Tehran.
In a reference to TV series of Game of Thrones and its motto “Winter is coming”, Trump tweeted on Friday: “Sanctions are coming”
— Donald J. Trump (@realDonaldTrump) November 2, 2018
Trump withdrew from the US nuclear agreement in May, which was signed in 2015, branding the deal “defective” because it had failed to prevent Iran from developing a ballistic missile programme.