Oil jumps more than 3% to new highs as US quits Iran nuclear deal
Benchmark Brent oil jumps $2 to above $77; US sanctions are likely to cut Iran oil supplies next year with buyers already seeking alternatives to Iranian crude
London — Oil prices rose more than 3% on Wednesday, hitting three-and-a-half-year highs, after US President Donald Trump abandoned a nuclear deal with Iran and announced the "highest level" of sanctions against the oil cartel Opec member. Ignoring pleas by allies, on Tuesday Trump pulled out of an international agreement with Iran that was agreed in late 2015, raising the risk of conflict in the Middle East and casting uncertainty over global oil supplies at a time when the crude market is already tight. Brent crude oil touched its highest since November 2014 at $77.20 a barrel. The benchmark contract was up $2.15 a barrel, or more than 2.8%, at $77.00 by 7.30am GMT. US light crude was up $1.90 a barrel, or almost 2.8%, at $70.96, near highs also last seen in late 2014. In China, the biggest single buyer of Iranian oil, Shanghai crude futures hit their strongest in dollar terms since they were launched in late May. "Iran’s exports of oil to Asia and Europe will almost certainly decl...
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