Raheb Homavandi/Reuters
- Oil jumped to its highest since November 1 on Monday.
- The Trump administration said it would end sanctions waivers in May that had previously allowed eight countries to purchase crude from Iran.
- The move aims to send Iranian energy exports to zero, which could pressure global supply.
- Watch oil trade live.
Oil prices jumped on Monday after the US announced plans to ratchet up energy sanctions against Iran.
The Trump administration said it would end sanctions waivers in May that had previously allowed eight countries to purchase crude from Iran, a move that aims to competely cut off energy shipments from what had been the fourth-largest OPEC producer.
"This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue," the White House said in a statement.
Other major oil producers including Saudi Arabia and the United Arab Emirates have said they will adjust production in an attempt to avoid a supply squeeze, the administration said. Brent, the international benchmark, jumped 2.5% to $73.77 per barrel on Monday morning. West Texas Intermediate rose 2.1% to $65.39.
Trump withdrew the US from the Iran nuclear deal last year, calling on buyers to cut off oil imports from the Islamic Republic. The administration granted several countries — including China, Turkey, and India — temporary waivers to avoid price shocks.
The move was part of the Trump administration’s maximum-pressure campaign against Iran. The president designated the Islamic Revolutionary Guard Corps as a terrorist organization earlier this month, the first time the US has named part of a foreign government as such.
The State Department last year created a list of demands Iran would need to meet for sanctions to be lifted, including completely halting its nuclear and ballistic missile program and ending military engagement in Syria and Yemen.
Bloomberg reported Iran has threatened to retaliate against sanctions by closing the Strait of Hormuz, a crucial passageway for Persian Gulf oil.
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SEE ALSO: Here’s why Trump wants to shut Iran out of the oil market
Source: Business Insider – gheeb@businessinsider.com (Gina Heeb)