Iran sanctions send oil prices, supply concerns higher
NEW YORK (AP) — The Trump administration’s decision to impose sanctions on countries that buy Iranian oil is raising concerns about global crude supply and sending oil prices to their highest levels since October.
Industry experts said Monday that the sanctions could potentially remove up to 1.2 million barrels of oil per day from international markets. But that number would likely be lower, depending on how countries respond and just how much oil Iran continues to export.
The announcement primarily impacts Iranian oil importers including China, India, Japan, South Korea and Turkey.
Analysts say it’s difficult to imagine all of Iran’s exports being cut off, and Saudi Arabia may increase production to make up for the Iranian losses.
The development also could raise the price of gasoline in the U.S.