US sanctions on Tehran raise oil prices




Oil prices rose on Tuesday as the first US sanctions package entered into force, fueling concerns that the next package of sanctions targeting Iranian oil would lead to shortages.

Brent crude futures were up 90 cents, up more than 1 percent to $ 74.65 a barrel, after rising to $ 74.90 a barrel, according to Reuters.

US crude futures rose 29 cents to $ 69.30 a barrel, after rising earlier to $ 69.83.

The first package of Washington sanctions targets Iran's purchases of US dollars and its trade in metals, coal, industrial software and the automotive sector.

The US sanctions on Iran's energy sector are due to be re-imposed after the November 4 deadline.

"This is certainly a reminder to everyone that the United States is serious about sanctions, and it is doubtful that they will be granted exemptions," said John Keldof of Agen Capital Management.

Oil prices rose after the sanctions came into force but gains were limited, with Keldov saying market participants lack clear indications of how the proposed oil sanctions would affect Iran's crude production.

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