Investing.com - Oil prices fell on Tuesday morning in Asia, retreating from three-and-a-half-year highs as traders waited for U.S. President Donald Trump’s decision on whether the U.S. will re-impose sanctions on Iran.
Crude Oil WTI Futures for June delivery were trading at $69.97 a barrel at 11:00PM ET (03:00 GMT), down 1.07%. Brent Oil Futures for July delivery, traded in London, were down 0.89% at $75.49 per barrel.
On Monday, oil prices rose above $70 a barrel for the first time since November 2014, as possible Iran sanctions threatened to disrupt oil supplies.
Oil markets have remained on edge since Iran took a tough stance in its response to the U.S. regarding a 2015 nuclear deal that will expire on May 12.
Trump said on Monday a decision on whether to remain in the Iran nuclear deal or to impose sanctions would be announced at 2:00PM ET (18:00 GMT) on Tuesday, four days earlier than expected.
Should Trump announce he will not be renewing a waiver on sanctions, Iranian oil sales will be significantly reduced within six months. As Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), sanctions would likely tighten global supplies.
Iran’s exports could be cut by 200,000 to 300,000 barrels per day (bpd) as a result. Iran’s oil exports hit 2.6 million bpd in April, with China and India buying more than half of Iran’s oil.
If Trump restores U.S. sanctions, under U.S. law he must wait at least 180 days before imposing their furthest-reaching measure, which is to target banks of nations that fail to significantly cut their purchases of Iranian oil.
Iranian officials said that the country’s oil industry would continue to develop even if the U.S. exits the nuclear agreement.
Meanwhile, Shanghai Crude Oil WTI Futures for September delivery were up 0.90% at 458.80 yuan ($72.10) per barrel.