Crude Oil Dips Despite US Sanctions – What’s Going On?

The US introduced sanctions against Iran on Monday, replacing standards lifted under a 2015 nuclear deal arranged by the administration...


WTI crude oil prices continue to trade its bearish momentum despite the drop on Monday as the start of US sanctions against Iran’s fuel exports. If you are wondering what caused this drop, let me help you understand this…

1- The US-China trade war has impacted crude oil’s demand significantly which is causing a bearish impact on the market.

2- The US introduced sanctions against Iran on Monday, replacing standards under a 2015 nuclear deal arranged by the administration of President Barack Obama, and scoring 300 new designations including Iran’s oil.

In response, the Iranian President Hassan Rouhani told in a speech broadcast that Iran will disrupt US sanctions and proceed to sell oil.

Moreover, the United States has also granted some exemptions and they will temporarily let eight importers keep buying Iranian oil. Therefore, the market is reversing the impact of potential sanctions which were already priced in.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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