What Trump's Iran decision means for oil and gas prices

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While some USA allies such as Japan and South Korea will likely opt not to anger their Big Brother and stop importing oil from Iran, others, such as China and India, will continue buying Iranian crude as they are not dependent on the United States for their national security.

Bruno Le Maire said Europe should not act as "vassals" to the USA or accept that it is the "world's economic policeman".

Another positive sign for the Russian economy is the rise in oil prices, which rose to their highest level since 2014 after the U.S. withdrawal from the Iran deal.

"We want to reinforce this regulation and incorporate the recent decisions taken by the United States", Le Maire said.

The U.S. will also reimpose sanctions on specific persons who were targeted for their involvement in Iran's nuclear program, relieved of sanctions since January 16, 2016, when the nuclear deal was implemented.

European governments tried for months to persuade Trump to stick with the deal but failed, and now fear it will raise the risk of conflict in the region.

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"The prime minister raised the potential impact of USA sanctions on those firms which are now conducting business in Iran", her spokeswoman said.

Many analysts expect oil prices to rise as Iran's exports fall.

Russian President Vladimir Putin and German Chancellor Angela Merkel spoke Friday and underlined their aim of preserving the deal and peace in the Mideast.

Merkel said Friday the unilateral USA withdrawal undermines confidence in the global order, but that it wasn't enough to abandon decades of cross-Atlantic cooperation. Saudi Arabia signaled it could make up lost supplies, and Goldman Sachs Group Inc. said there's a chance prices may exceed its forecast.

USA businesses will also be affected by the sanctions, although they represent a small portion of the investment rush that Iran enjoyed in light of the nuclear deal.

"We are determined to keep this deal in place", declared Federica Mogherini, an Italian politician who serves as High Representative of the European Union (EU) for Foreign Affairs and Security Policy.

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"The objective of the wind-down provisions - for example, in the case of oil purchases from Iran, if it's a long-term requirements contract, for example - what we're saying is that although the sanctions come back into effect immediately, precluding any new contracts, for those affected by our jurisdiction, they've got six months to phase it out", said John Bolton, Trump's national security adviser, in a briefing with reporters.

President Donald Trump's decision will likely most hurt aircraft makers, oil companies and auto manufacturers.

A spokesman for Mrs May said: "The Prime Minister reiterated the Government's position on the Iran nuclear deal, noting that we and our European partners remain firmly committed to ensuring the deal is upheld, as the best way of preventing Iran from developing a nuclear weapon".

"The holy system of the Islamic Republic will step up its missile capabilities day by day so that Israel, this occupying regime, will become sleepless and the nightmare will constantly haunt it that if it does anything foolish, we will raze Tel Aviv and Haifa to the ground", he said, according to state television.

The U.S. sanctions have a 180-day period during which buyers should "wind down" oil purchases, meaning any loss of supply will not be immediately felt - and companies don't have to rush to find alternatives.

The European Commission says that U.S.

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Meanwhile, the USA government tried to further pinch Iran's finances by disrupting a currency exchange network allegedly used to transfer millions of dollars to Iran's Revolutionary Guard.

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