The crude oil prices rose by more than 2% at the start of trading on Wednesday after the Donald Trump withdrew the US from the international nuclear deal with Iran, and this could limit crude oil exports of one of the OPEC members on the already tightened market. Donald Trump pulled the United States out of the international nuclear deal with Iran, agreed at the end of 2015, increasing the risk of conflicts in the Middle East and generating uncertainty about global oil supplies.
The futures on US crude oil with delivery in June rose by 2.22% to 70.59 USD per barrel. The Brent oil increased by 2.39% to 76.64 USD per barrel.
Iran became the major exporter of oil in 2016 after international sanctions against it have been lifted in exchange for curbing the nuclear program. In April, the exports from the country reached 2.6 million barrels per day. This makes Iran the third largest exporter of crude oil within OPEC after Saudi Arabia and Iraq.
Withdrawing from the deal means that the US is likely to impose sanctions again on Iran after 180 days, unless otherwise agreed. Donald Trump launches a scenario that will significantly tighten the oil market in the second half of the year and the next.
The Iranian oil exports to Asia and Europe will surely decline this year and next, as some countries are looking for alternatives to avoid problems with Washington.
Nevertheless, it is still unclear how strongly the world oil markets will be affected. The US does not buy Iranian oil, and the other signatories to the deal, Russia, Britain, France and Germany, are opposed to the deal. Asia, which is the largest importer of oil from Iran, is likely to continue to buy certain quantities of raw material from the country.
On the commodity markets, the gold depreciated by 0.335 to 1,309.40 USD per ounce. The remaining metals are also traded on red territory.
The dollar index, which measures the strength of US dollars against a basket of six major currencies, rose by 0.23% to 93.15 points.