07:03 GMT29 July 2021
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    The US government announced on Monday that it would not renew the waivers for Iranian oil importers that are valid through 1 May 2019. The waivers were granted to eight countries: China, Inda, Italy, Greece, Japan, South Korea, Taiwan and Turkey in November 2018.

    Sputnik spoke to Manouchehr Takin, a London-based independent expert and economist, to find out about the possible reaction of the US' allies and buyers to Washington's decision.

    Sputnik: How will US sanctions affect the oil market?

    Manouchehr Takin: The oil price will rise, and even the United States is going to feel that. President Trump doesn't want to lose his popularity, but prices can rise; Americans are already refueling their cars at $3 per gallon.

    READ MORE: Iran Can Export as Much Oil as It Needs — Supreme Leader 

    Hasan Khosrowjerdi, Chairman of the Council for Economic Cooperation between Iran and Africa, noted that the situation in the oil market will depend on the behavior of its participants:

    "Of course, the embargo on oil deliveries from Iran will affect the market. Today, the main supply of Iranian oil goes to countries that have permission to buy it. It's known that Iran can export about 500 thousand barrels beyond what it exports to these countries. However, some time must elapse before we can comment on the reaction to the US's intentions."

    Sputnik: Having created difficulties for the sale of Iranian oil, will the United States promote Saudi Arabia, Iran's rival, in the market?

    Hasan Khosrowjerdi: There is no doubt that everything that is bad for us is in favour of Saudi Arabia. But can the Saudis totally replace the supply of Iranian oil? No, they can't. The possibilities of Saudi Arabia are not that great. Some time ago, they tried very hard, but failed to do that.

    Sputnik: Can the lack of oil supply in the market affect the situation in the US domestic oil market?

    Hasan Khosrowjerdi: With the decrease of oil supply, the price rises. In this case, what will be the policy of various countries? Rising oil prices will affect every country. It will be hard for the oil market to compensate for two million barrels [per day] of oil. The negative effects of such measures are inevitable.

    *Views and opinions expressed in this article are those of the experts and do not necessarily reflect those of Sputnik.

    The views and opinions expressed in the article do not necessarily reflect those of Sputnik.

    oil, sanctions, Donald Trump, Italy, India, Iran, China, Japan, Turkey, Taiwan1, US, Saudi Arabia, South Korea, Greece
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