Crude oil prices hit a five-month high on Tuesday to just under $74 a barrel.
JOHANNESBURG - The price of Brent crude hit a 2019 high on Tuesday on heightened supply concerns.
That’s after US President Donald Trump surprised the market with strict new measures aimed at reducing Iran's exports to zero.
The Trump administration announced that it won’t extend sanctions waivers to countries that import Iranian oil.
That means from next month, a country caught buying Iranian oil risks US sanctions.
The measures are designed to deprive the Iranian leadership of oil revenue.
But the clampdown further complicates Sino-US relations.
China and India are among the five major buyers of Iranian oil.
The waivers allowed 1.4 million barrels of Iranian crude to flow to the market daily and half of that went to China.
The new US policy threatens to wipe out much of that supply at a time when the oil market is already cutting supplies.