Current Oil Prices Rise after New US Sanctions versus Iran

The current oil prices increased after fresh sanctions were issued by the U.S. versus Iran, with Brent moving up to $116.37 a barrel.

The price of oil recently rallied following new sanctions imposed by the U.S. to the energy sector of Iran in a new effort to push the Islamic Republic to end its nuclear program.

On London’s ICE Futures Exchange, Brent recently settled higher by 21 cents to a crude price per barrel of $116.73. Meanwhile, on the NYMEX, the U.S. benchmark for March delivery ended at $96.62 per barrel.

The Treasury Department of the U.S. recently announced fresh sanctions aiming at the oil revenue of Iran. The sanctions inhibit Iran from obtaining access to revenues gathered from its exports of crude elsewhere.

With the sanctions, the importing nations are required to keep their payments within their country and only give them in exchange for commodities that Iran bought from them, to effectively restrict the revenue of Iranian oil abroad.

As a response, Iran condemned the sanctions as another hostile act from the government of the U.S.

The United States has led several rounds of sanctions from the West versus Iran in the past years based on claims that the Islamic Republic is engaging in non-civilian goals with its nuclear program.

Iran denies the accusations, saying that, as a nuclear Non-Proliferation Treaty signatory and an International Atomic Energy Agency member, it holds the right to utilize nuclear technology for peaceful aims.

Iran cites as evidence of its compliance the fact that the IAEA has performed many inspections of its nuclear facilities but has never seen any proof that a civilian nuclear project is being diverted to the production of nuclear weapons.

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