President Donald Trump's long-anticipated decision to pull the USA out of the Iran nuclear deal and reimpose sanctions on the Islamic Republic will have a swift effect on some big companies. At least some of that oil will now be pulled from the market - at a time when oil prices are already rising because of production cuts by OPEC and Russian Federation as well as instability in Venezuela.
The news agency Bloomberg, citing Amrita Sen, chief oil analyst at Energy Aspects Ltd., noted that the renewal of Iranian sanctions can drastically change the agenda for the upcoming OPEC meeting in June.
Apart from praising the withdrawal, Saudi Foreign Minister Adel al-Jubeir said that the country would do "everything we (Saudi Arabia) can" to build a nuclear bomb if Iran does the same, The Hill noted.
One factor that could prevent markets from tightening further is soaring US oil output.
The first deadline, on 6 August, will affect the purchase of U.S. dollars, trade in gold and certain other metals, as well as aviation and the auto industry. The reason being that lower oil prices are, net positive for growth. Besides, state-run fuel retailers too would not be able to hold their pump prices any longer. Today, the financial markets play a major role in setting oil prices. But with the deed now done, what lies ahead, and what are the risks to the economy and stocks?
"I have ordered Iran's atomic organisation that whenever it is needed, we will start enriching uranium more than before", Mr Rouhani said.
"We hope that with this visit to China and other countries we will be able to construct a clear future design for the comprehensive agreement", Mohammad Javad Zarif told reporters after talks in Beijing with his Chinese counterpart Wang Yi.
Unfortunately, in response to the perception of increased energy security owing to the shale boom, the U.S. Congress has been selling off the petroleum reserve piecemeal to fund other budget priorities.
Indeed, fear of disruption in physical delivery of oil from Iran may be premature since Trump has 180 days to decide on slapping sanctions.
This was part of the flaw of the deal to entice Europe and the United States into economic relations with Iran that eventually would have worked against really holding Iran accountable for violations of the deal.
The shale revolution has transformed the United States into a one of the world's biggest oil producers, with substantial economic and geopolitical benefits. A mid-week assessment from Geoffrey Craig, the oil futures editor at S&P Global Platts, said markets could be ready for a sell-off after the Trump-triggered peak for the week unless the gap between supply and demand is shrinking.