As sanctions on Iran were re-introduced, oil prices recovered some ground on Monday after five days of heavy losses. The United States imposed a range of punitive sanctions on Iran, aiming to curb exports by the Islamic Republic.
The move is part of a wider effort by U.S. President Donald Trump to curb Iran’s missile and nuclear programs. Iranian President Hassan Rouhani said that Iran would break the sanctions and continue to sell oil.
Pompeo said Washington had granted temporary exemptions to eight countries: China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea.
Oil markets have been anticipating the sanctions for months. The world’s biggest producers have been increasing output.
Benchmark Brent crude oil LCOc1 was up 80 cents a barrel at $73.63. U.S. light crude CLc1 was 50 cents higher at $63.64. Both oil benchmarks have lost more than 15% since hitting four-year highs in early October.
Forex – Commodities – Sanctions on Iran re-introduced– Oil prices up
Currency traders will be focusing on U.S. midterm elections on Tuesday U.S. time.
The dollar paused after 3 consecutive weeks of gains as investors took profits before U.S. midterm elections this week. The dollar weakened by 0.66% versus the yen in the month of October. Trade tensions, geopolitical risks and a global economic slowdown gave the Japanese currency a flight-to-safety boost.
The dollar index was down 0.1 percent at 96.39. It hit a June 2017 high of 97.20 last week.
The sterling rallied on Monday after a Sunday Times report said Britain was nearing a deal for leaving the EU. Despite Brexit relief supporting risk appetite in currency markets, the UK’s Telegraph reported that significant hurdles remain to be overcome.
The pound traded flat versus the dollar after trading up half a percent at a 10-day high of $1.3065. Further, versus the euro it climbed to 87.33 pence, its highest since Oct. 11, trading up 0.3 percent on the day.
In addition, the euro gave up all its gains and softened 0.1% to $1.1378.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.