Oil spikes to 6-month high after Trump crackdown on Iran

Oil prices on Monday spiked to their highest levels since October after President TrumpDonald John TrumpTrump calls Sri Lankan prime minister following church bombings Ex-Trump lawyer: Mueller knew Trump had to call investigation a ‘witch hunt’ for ‘political reasons’ The biggest challenge from the Mueller Report depends on the vigilance of everyone MORE announced the U.S. would not renew sanction waivers that had allowed eight countries to buy Iranian oil.

Brent crude rocketed past $74 a barrel, its highest point this year, and American consumers may soon see the price increase at gas stations nationwide.

ADVERTISEMENT

The administration’s move was designed to ratchet up pressure on Iran almost a year after Trump withdrew from the 2015 nuclear deal negotiated by former President Obama.

After reimposing oil sanctions in November, the U.S. agreed to grant waivers allowing eight countries to continue buying Iranian oil: China, India, Japan, Turkey, Italy, Greece, South Korea and Taiwan.

The White House said Monday it had struck agreements with oil-producing allies such as Saudi Arabia and the United Arab Emirates “to take timely action to assure that global demand is met as all Iranian oil is removed from the market.”

Iran responded by threatening to close the Strait of Hormuz, which would affect the transport of oil, according to the semi-official Tasnim news agency.

The agency quoted Gen. Alireza Tangsiri, the head of the Iranian Revolutionary Guard saying, “If we are banned from using it, we will close it.”