Crude Jumps More than 2 Percent as US Plans to Eliminate Sanctions Waivers for Iran Oil Imports

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures surged more than 2 percent on Monday after a Reuters source familiar with the issue confirmed a report that the Trump administration is set to announce all imports of Iranian oil must end or be subject to sanctions. The news means that less-supply will be hitting the markets in the near-future. Since this is a bullish development, traders are responding accordingly with strong buying and short-covering.

At 04:42 GMT, June WTI crude oil futures are trading $65.66, up $1.59 or +2.50% and June Brent crude oil is at $73.82, up $1.85 or +2.57%.

The decision to waive exemptions, which was first reported by The Washington Post, was finalized on Friday by President Trump, according to the unnamed officials. They said it is intended to further ramp up pressure on Iran by strangling the revenue it gets from oil exports.

The unnamed officials who leaked the story were not authorized to discuss the matter publicly and spoke on condition of anonymity ahead of the official announcement by Secretary of State Mike Pompeo.

Pompeo plans to announce on Monday that the administration will not renew sanctions waivers for five countries – China, India, Japan, South Korea and Turkey – when they expire on May 2, three U.S. officials said.

The Secretary of State will announce “that, as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate”, the Post’s columnist Josh Rogin said, citing two State Department officials that he did not name.