President Donald Trump said Tuesday that the USA would withdraw from the Iran nuclear deal and reimpose sanctions that have been frozen since January 2016 as part of the Joint Comprehensive Plan of Action.
He added the kingdom "remains committed to supporting the stability of oil markets for the benefit of producers and consumers alike, and for sustaining growth in global economy".
Asked whether Riyadh would "build a bomb itself" if Tehran seizes on Washington's withdrawal from the 2015 Iran deal to resume a nuclear weapons program, Jubeir said: "If Iran acquires nuclear capability we will do everything we can to do the same". Given the Trump administration's claim to have left the Iran deal based on nonproliferation concerns, it now has leverage to apply the same policy to Riyadh.
"We are largely unaffected", said A.K. Sharma, finance chief at Indian Oil Corp (IOC).
Volumes jumped for all key crude oil futures contracts as investors took new positions and refiners hedged to protect themselves from higher feedstock prices.
Could this be the hottest Mayday since records began?
He said: "Average temperatures should be about 15C (59F) so they are about 10C (50F) above average for this time of year". He said: "Swathes of Britain are about to enjoy a warm and settled Bank Holiday weekend".
Energy-rich Saudi Arabia, a fierce regional foe of Iran's, is already seeking U.S. help in starting a nuclear program of its own, giving rise to concerns that it might be trying to compete with Iran's nuclear program and create its own nuclear weapons program.
It's unclear how much oil will be restricted under the US sanctions since USA partners in the nuclear agreement are against ending the deal, and Iran has said it will try to stay in it. Analysts expect some to comply but others, like China, a party to the deal, may continue to buy Iranian oil and even increase its purchases at a discounted price.
In theory, too, the United States is open to granting waivers to importers of Iranian crude, provided they show some willingness to reduce their purchases.
"Europe and China will not fight against the US sanctions". The JCPOA is working - that is a view shared by our European allies, independent experts, and the current U.S. Secretary of Defense.
The United States will likely re-impose sanctions against Iran after 180 days, unless some other agreement is reached. "As we get close to $80, they have to consider that the market will be looking for their decision on next year", Sfakianakis said. "And it is a clear example of Middle East brinkmanship that runs counter to what President Barack Obama intended when the nuclear deal was struck in July 2015".