Brent gains following Trump’s latest move against Iran
The front-month ICE Brent contract has gained by $1.41/bbl on the day, to trade at $64.61/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Escalating political unrest in Iran has pushed Brent crude’s price close to $65/bbl.
US President Donald Trump has vowed to impose 25% tariff on all imports from countries that are still “doing business” with Iran, amid nationwide protests demanding a change in regime in the Islamic Republic.
“Crude oil prices were steady as the market frets about the potential impact of rising unrest in Iran on oil supplies,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
If imposed, the tariff could strain Washington’s ties with Iran’s trade partners, including major economies such as India, Turkey and China, according to market analysts.
“The possible disruption of almost 2mb/d [2 million b/d] has tempered concerns over a global glut of oil,” Hynes added.
Downward pressure:
Brent’s price has felt some downward pressure following news that Venezuela is expected to resume oil exports soon.
“US President Trump signed an executive order to safeguard the Latin American [Venezuela] country’s oil revenue held in US Treasury accounts from the nation’s creditors,” Hynes said.
Last week, Trump said Venezuela’s interim administration will turn over about 50 million bbls of sanctioned oil, to be sold at the market price.
By Aparupa Mazumder
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