On Wednesday, Reuters reported the details of a private and "secret" deal reached between Russian Federation and Saudi Arabia, a deal that was aimed at increasing oil output in order to offset the coming shock to oil prices that will follow USA efforts to starve Iran of its oil revenues. The oil price now stands at just over $84. The US sanctions imposed by the US will come into effect on 4 November.
The White House said Thursday as it reiterated its warning to all purchasers of Iranian oil to bring it down to zero by November 4 or face imminent sanctions from the United States.
Indian buyers reduced U.S. crude purchases and loaded up on Iranian oil ahead of the restart of USA sanctions next month and as the WTI-Brent differential narrowed, according to traders and shipping intelligence firm Kpler.More news: Red Sox need to find a way to cool Bombers
The US officials were least moved, however, with President Donald Trump's National Security Advisor (NSA) John Bolton revealing that the US would give up the "optional protocol" under the Vienna Convention on Diplomatic Relations - a 1961 worldwide treaty that outlines diplomatic ties between nations.
"Iran is attempting to interfere with the sovereign rights of the United States to take the lawful actions necessary to protect our national security, and Iran is abusing the ICJ for political and propaganda purposes", Pompeo told reporters.
As exports have fallen, domestic refinery runs have increased sharply.
The Saudis, by contrast, are bitter rivals with Iran in the Middle Eastern region and applauded Trump's decision to quit the nuclear deal. Indeed, some well-regarded analysts have warned that if oil prices reach $100, it could lead to a global economic collapse and a collapse of the equity market.More news: Riyad Mahrez lets Liverpool off the hook with woeful penalty
Oil prices continue to be supported by the deadline and the hard-line enforcement expected by the administration of President Donald Trump.
While Goldman Sachs Group Inc is not that bullish, the Wall Street bank sees a risk of oil holding above US$80 toward the end of the year. "It now appears that only China and Turkey may be willing to risk US retaliation by transacting with Iran".
India, Iran's top client after China, has close diplomatic ties with Iran, where it is building a strategic port called Chabahar that is expected to be operational by 2019.
The kingdom has lifted production nearly to a record and might raise it again next month, although doing so will infringe on available spare capacity, limiting Saudi Arabia's ability to react to other supply shocks. Iran needs to continue down a path of economic self-sufficiency.More news: Another easy day, win for Tua, Tide