Oil Jumps To Record Levels After Trump Quits Iran Deal

Oil prices rose to more than 2% on Wednesday, with Brent record levels since three-and-a-half-year after the US President Donald Trump announced abandoning the nuclear deal with Iran and announcing sanctions on the OPEC member.

Brent crude contracts reached the highest levels since November 2014 at $ 76.75 a barrel, and The price reached $ 76.52 a barrel at 6:28 am GMT, up with $ 1.67, 2.2% from the previous close.

In China, the largest single buyer of Iranian oil, crude contracts in Shanghai reach their highest dollar levels since their launch in late March, above $ 73.20 a barrel.

Analysts attributed the strong price rise to an expected drop in Iranian oil exports.

“Iran’s oil exports to Asia and Europe are almost certain to decline later this year and in 2019, with some countries looking for alternatives to avoid trouble with Washington and with the onset of sanctions”, said Sukrit Vijayakar, Director of Energy Consultancy, Trevkata.