Oil Drops After Trump’s Report on Reducing Sanction Against Iran
The position of Donald Trump to ease sanctions against Iran led to a significant drop in oil prices. In three hours, Brent crude oil lost 3.74 percent. On September, 11, oil prices were slightly adjusted, but daily losses exceed three percent. Brent was trading at 60.86 USD per barrel, and WTI at 55.86 USD.
Trump's dismissal of his national security adviser John Bolton who was committed to an active pressure on U.S. opponents also led to such dynamics. Commenting on his resignation, the head of the White House pointed out that before possible negotiations with Iran he could mitigate sanctions against the country.
The U.S. Treasury Secretary Stephen Mnuchin also supported this initiative. He announced on September, 10 that Trump was ready to negotiate with Tehran without preconditions. As the sources indicated, by that time the decision to dismiss Bolton had already been made.
After exiting the nuclear deal, the United States imposed a ban on oil exports by Iran and threatened to sanction any country or company for cooperating with the Islamic Republic. In this regard, Tehran began to sell oil on the gray market accusing the United States of such a decision. Easing sanctions on Iran’s oil exports will increase market supply.