London (Web Desk): Oil prices on Wednesday have been increased by two percent in the international market and this trend may continue, international media reported.
US benchmark crude closed above $70 per barrel for the first time since November 2014.
Oil prices have been climbing after the US President Donald Trump pulled the US out of the landmark nuclear deal with Iran on Tuesday and also reimposed sanctions targeting the country’s oil exports.
Mr Trump said the US would reimpose nuclear sanctions on Tehran by the end of a six-month wind-down period and warned countries that import Iranian crude to cut purchases immediately. Iran exports 2.5m barrels of oil a day. Brent crude climbed 2.5 per cent to $76.72 a barrel to a three-and-a-half-year high in Asia. The international benchmark fell as much as 4 per cent on Tuesday ahead of Mr Trump’s announcement before recovering to settle down 1.7 per cent. US marker West Texas Intermediate rose 2.3 per cent in Asia to $70.66 a barrel following similar moves in the previous session. “While the US does not import any Iranian oil, the return of US sanctions will penalise countries that have not significantly reduced their crude purchases from Iran,” UBS said in a note. “As a result, we expect Trump’s move to push Brent higher, and lead to increased volatility over coming months.”
The story is originally published by ‘Financial Times’