US sanctions on Iran come into effect, but grants exemption to eight
The US sanctions on Iran came into effect from midnight of 4 November, stopping nations from buying or selling to Iran. Iran is an oil-rich economy and many economies depend on Iran for its quality oil. India in particular has built refineries that can process on Iranian oil.
Considering the fact, the US has granted waivers on Iranian oil imports to key buyers in Asia, including South Korea, the region's largest buyer of Iranian condensate. However, in a message, the US Secretary of State Mike Pompeo did not identify the recipients of the waivers, but they are expected to include China and India.
The Trump administration's hard-line sanctions enforcement was a main driver of higher crude prices in late August and September. While prices have since eased, the sanctions are expected to remain a key factor affecting oil markets.
Meanwhile, shipping freight markets are bullish due to weather-related long port delays and the beginning of loading for the third decade of November.
