US allies lament Trump's decision to pull out of Iran deal

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It has to be noted that India's import of oil from Iran has declined in recent times.

It was the Saudi government daily Al-Riyadh's May 9, 2018 editorial, titled "Washington Has Had Its Say", that stated: "The announcement by the American president Donald Trump of his country's withdrawal from the Iran nuclear deal is an important historic event on the worldwide level".

Even after the deal, Iran continued to preserve and expand its nuclear weapons know-how for future use at the Fordow nuclear testing site, said Netanyahu.

Iran became the major exporter of oil in 2016 after worldwide sanctions against it have been lifted in exchange for curbing the nuclear program. "He wants higher prices".

Crude surges past $71 for the first time since 2014.

Americans are shelling out more money at the gas pump just as the summer driving season is about to heat up.

No one knows exactly how high prices will go.

In February 2017, shortly after the Iran tests ballistic missiles, the United States imposed new sanctions, which came 13 individuals and 12 organizations.

This would make the United States the world's largest producer, ahead of both Russian Federation and Saudi Arabia. In a statement late Tuesday, the Saudi energy ministry said was "committed to supporting the stability of oil markets".

On Wednesday, a separate OPEC source had said Saudi Arabia was monitoring the impact of the US move on oil supplies and was ready to offset any shortage but would not act alone. Heightened geopolitical fears in the Middle East often raise prices.

The latest example is the military clash between Iran and Israel in Syria.

So, it's not an overstatement to say that the oil market could be really tight by the end of this year if OPEC decides in June not to relax their production cuts.

"Iran producers usually sell cargoes [on a] FOB [free on board] basis", with the freight cost borne by buyers, Yu said.

In the U.S., EIA data showed crude stockpiles slid by 2.2 million barrels last week, exceeding a Bloomberg forecast for a 1 million-barrel gain in stockpiles before the report was released. While it is still uncertain how far he intends to curtail Iranian oil shipments, most analysts predict a cutback.

The U.S. decision to withdraw from Iran nuclear deal on Tuesday drew criticism from European countries. China, Iran's largest customer, may be especially reluctant to cut Iran off because of the trade tensions between Beijing and Washington.

The aircraft sales were among the most sought-after contracts for Iran.

Bank of America has predicted that oil prices could reach $100 a barrel next year.

"Looking into the next 18 months, we expect global oil supply to demand balances to tighten driven by the ongoing collapse in Venezuelan output".

Other major producers could fill the hole left by Iran. How long Saudi Arabia would be able to maintain such a policy is unclear.

The administration said it was giving most worldwide companies 90-day and 180-day "wind-down periods" to exit contracts and ventures in Iran. The United States should not negotiate with the world's largest state sponsor of terror.

This source had also said the impact of US sanctions on Iranian supplies needed to be assessed first and Saudi Arabia did not expect any physical impact on the market until the third or fourth quarters.