Trump's Exit From Iran Nuclear Pact Adds Variable to North Korea Talks

Trump's Exit From Iran Nuclear Pact Adds Variable to North Korea Talks

The United States plans to impose new sanctions against Iran, which produces around 4 percent of global oil supplies, after abandoning an agreement reached in late 2015 which limited Tehran's nuclear ambitions in exchange for removing US-Europe sanctions.

U.S. President Donald Trump had until May 12 to issue a waiver on oil-related sanctions or move against the principles of the JCPOA.

USA output will likely rise further this year, towards or past Russia's 11 million bpd, as its energy firms keep drilling for more.

On Wednesday, the International Energy Agency said it estimates Iran is the fifth-largest exporter and sanctions could have drastic implications on market balance.

He said the sanctions would target industries mentioned in the deal, including Iran's oil sector, aircraft manufacturers exporting to Iran and Iranian government attempts to buy USA dollar banknotes.

The sanctions will have an impact on other industries too.

"Given the unilateral move by the USA, much of the movement on oil prices had been factored in", said Stephen Innes, head of Asia-Pacific trade at OANDA.

"My expectation is not that oil prices go higher", he said.

Iran's crude oil exports surged by 1 million barrels per day after the nuclear deal took effect in early 2016.

The Organization of the Petroleum Exporting Countries is in the midst of an oil supply-cutting deal with non-OPEC producers such as Russian Federation that has helped erase a global glut and boosted oil prices to $76 a barrel, the highest since 2014.

Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new U.S. sanctions range from 200,000 bpd to 1 million bpd.

"He proposed no new strategy". "I think they would as quickly as possible try to implement the sanctions".

Days after the United States president walked away from a three-year-old nuclear deal, senior administration officials said monitoring should continue regardless.

And it came amid growing tension between the Sunni kingdom and the Shiite Islamic republic over Iran's support for the Huthi rebels in Yemen, who have been firing rockets across the border.

By 0823 GMT, the pan-European STOXX 600 had risen almost 0.2 percent to fresh three-month highs, while higher crude prices helped the commodity-stocks-heavy FTSE index.FTSE gain 0.4 percent. Some exemptions are due to be negotiated but it is not yet clear what, the BBC reported.

On Thursday, US individuals and entities were barred from doing business with six Iranian individuals and three companies Washington says have ties to the Revolutionary Guards.