Nnamdi Anyadike examines what effect the US withdrawing from the Iran Nuclear Deal will have on global oil markets and its impact on global trade flows
The withdrawal by President Trump’s Administration’s from the Iran Nuclear Deal, also known as the Joint Comprehensive Plan of Action (JCPOA) on May 8, has reverberated around the world.
The administration has demanded that all of Iran’s current oil consumers completely eliminate their Iranian oil imports, by no later than November 4. The US State Department director of policy planning Brian Hook said the goal is to increase pressure on the Iranian regime by ‘reducing to zero’ its revenue on crude oil sales.
But Iran is one of the ‘giants’ of OPEC. It produces close to 4.5 million barrels per day (bpd) of crude oil and according to most recent data it currently exports 2.7 million bpd of crude oil and condensates a month. So, the decision taken by Trump, much against the advice of the other parties to the Iran accord, to re-...