Oil prices drop after Iran sanction carve-outs

NEW YORK – Crude oil prices briefly dipped into a bear market after President Donald Trump carved out some countries from U.S.-imposed sanctions on Iran.

The price of West Texas Intermediate crude reached a low of $61.31 a barrel Tuesday. That was down about 20 per cent from Oct. 3 when oil was trading at $76.41 per barrel at the market close.

Trump re-imposed sanctions on Iran Monday, and in the lead-up to the announcement analysts feared global oil prices could spike.

But Trump carved out exemptions for China, Japan, South Korea, India and Taiwan in Asia, as well as Greece, Italy and Turkey in Europe.

The sanctions aim to cut Iran’s oil industry off from international sales. The penalties also cover hundreds of Iranian and Iran-linked individuals, entities and aircraft.