U.S. crude oil fell below $81 a barrel on Tuesday, the lowest level since March, as the market brushed off the threat of additional sanctions on Iranian oil.to include foreign ports, vessels and refineries that knowingly process crude from the Islamic Republic. The Senate could vote on the bill as soon as this week.
"This bill significantly increases sanctions on Iran, it increases the enforcement mechanisms," Helima Croft, commodities strategist with RBC Capital Markets, told CNBC'sCiti upgrades energy sector, says geopolitical tensions could keep oil prices higher for longerDirect Iran-Israel war could spike oil by $30 to $40, Bank of America saysSurging oil prices may challenge the Federal Reserve’s inflation fightTrump trial: Hearing on gag order violations; David Pecker to resume...
The White House will face a"tough choice" this summer on whether to impose the sanctions or issue waivers due to concerns about a tight oil market, Croft said. The Biden administration is very concerned about high oil prices ahead of the election, said Amrita Sen, founder and director of research at Energy Aspects.
"It's a U.S. election year, and the U.S. is going to do absolutely anything in its power to make sure prices don't go up," Sen told CNBC's"U.S. crude oil hovers near $83 after Iran says it will not escalate conflict with Israel