Economics

Iran Sanctions Kick In, Bringing Biggest Oil Disruption in Years

U.S. gives 8 countries a reprieve to keep buying Iranian oil
But export slump will still accelerate once sanctions hit

SocGen’s Mark Keenan talks about oil output, demand and prices.(Source: Bloomberg)

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By Grant Smith

November 2, 2018 at 12:00 AM UTC

Updated on

November 3, 2018 at 12:01 AM UTC

This article is for subscribers only.

Midnight on Sunday will mark a dividing line in the world of oil. Beyond that point, anyone unloading a tanker from Iran risks the full wrath of the U.S. government.

While the U.S. softened its crackdown on the Middle East’s third-biggest oil producer on Friday, allowing some trade to continue, exports are already slumping. Shipments have plunged 37 percent since President Donald Trump announced that he’d reimpose sanctions, and once those penalties kick in on Nov. 5, the overall supply disruption could become the biggest since Libya erupted in civil war at the start of the decade.