The dollar rose to 8,000 Tomans and Brent oil reached $77 per barrel.
The price of a barrel of North Sea Brent oil reached more than $77 the day after the announcement of the US withdrawal from the nuclear deal. Although the foreign exchange market in Iran was also stagnant, news of the supply of 8,000 Toman dollars was also published.
Following the announcement of US President Donald Trump's decision to withdraw the country from the P5+1 nuclear agreement with Iran, known as the Joint Comprehensive Plan of Action (JCPOA), global oil markets became inflamed.
On Wednesday, May 9, the price of a barrel of North Sea Brent oil exceeded $77 for the first time since the final months of 2014.
The price of Brent oil in global markets was on an upward trend even before Trump's official announcement of his position on the nuclear deal.
Thus, the price of Brent crude oil and other types of oil in global markets jumped by more than $2 per barrel just after the official announcement of the US government's positions on the JCPOA.
Asian oil markets
The greatest impact of Trump's decision to reimpose sanctions on Iran's oil and gas industries is on Asian markets. Therefore, Asian oil markets reacted more aggressively to Trump's decision, a trend that was evident in the Shanghai market, among others.
Iran is not only the third largest oil producer in OPEC after Saudi Arabia and Iraq, but also one of the main suppliers of oil to Asian countries. A significant portion of Iran's crude oil exports has so far been destined for the markets of India, China, Japan, and South Korea.
To alleviate the concerns of oil buyers in Asia, Saudi Arabia has announced that, while implementing economic sanctions on Iran, the country can meet part of the energy needs of Asian countries.
South Korea has also announced that it will negotiate with American officials overseeing sanctions regarding oil imports from Iran.
8 thousand tomans dollar
The shortage of dollars in the free market caused Tehran's exchange offices to remain stagnant the day after the announcement of the US decision on the JCPOA.
Despite the fact that the market in many exchange offices was sluggish and gold, dollars, and other foreign currencies were not traded normally, according to reports from some domestic news agencies, the dollar reached the 8,000 toman mark at certain times of the day.
In a field report by an “Eqtisad Online” reporter on Wednesday, May 9, it was stated, among other things: “Although the dollar market was tense for several hours of the day, and the dollar was priced at 8,000 tomans even though it had no buyers.”
The reporter of “Eqtisad Online” continued his report by announcing the adjustment of currency prices in the free market. The media outlet’s report also mentioned the “continuous presence” of police forces in Ferdowsi Square and from there to Manouchehri. The reason for the police presence in these parts of Tehran was stated to be “to prevent market unrest.”
Source: DW
