Dollar Reaches 8,000 Tomans and Brent Oil Hits $77 per Barrel
The price of a barrel of Brent crude oil from the North Sea rose to over $77 on the day following the announcement of America’s withdrawal from the nuclear agreement. Although Iran’s currency exchange market was sluggish, reports emerged of dollar offerings at 8,000 tomans per dollar.
Following the announcement by Donald Trump, the US president, of America’s withdrawal from the five-plus-one nuclear agreement with Iran, known as the JCPOA, global oil markets became volatile.
On Wednesday, May 9 (Ordibehesht 19), the price of a barrel of Brent crude oil from the North Sea crossed the $77 threshold for the first time since the final months of 2014.
The price of Brent crude oil in global markets showed an upward trend even before Trump formally announced his position on the nuclear agreement.
As a result, the price of Brent crude and other types of oil in global markets experienced a jump of more than $2 per barrel only following the formal announcement of the US administration’s stance on the JCPOA.
Asian Oil Markets
The most significant impact of Trump’s decision regarding the resumption of sanctions on Iran’s oil and gas industries is focused on Asian markets. Consequently, oil markets in Asian countries reacted to Trump’s decision with greater volatility. This was evident particularly in the Shanghai market.
Iran is not only the third-largest oil-producing country in OPEC after Saudi Arabia and Iraq, but is also considered one of the primary suppliers of oil to Asian countries. A significant portion of Iran’s crude oil exports had been directed to the markets of India, China, Japan, and South Korea.
Saudi Arabia has announced that in line with implementing economic sanctions against Iran, it can supply part of Asian countries’ energy needs.
South Korea has also announced that it will negotiate with US officials overseeing sanctions regarding oil imports from Iran.
8,000 Toman Dollar
The shortage of dollars in the open market caused the activity of Tehran’s exchange offices to remain sluggish on the day following the announcement of America’s decision regarding the JCPOA.
Although many exchange offices had stagnant markets and gold, dollar, and other foreign currency trading were not taking place in their usual manner, according to reports from some domestic news agencies, the dollar reached the 8,000 toman threshold in some hours of the day.
In a field report by the correspondent of “Online Economy” on Wednesday, Ordibehesht 19, it was stated: “Although the dollar market was tense during certain hours of the day, the dollar was priced at 8,000 tomans despite having no buyers.”
The “Online Economy” correspondent also reported on adjustments to currency prices in the open market. In this outlet’s report, reference was made to the “continuous presence” of police forces at Ferdowsi Square and from there to Manouchehri. The presence of police in these areas of Tehran was attributed to “preventing market inflation.”
Source: DW
