End to Iran oil waivers won't hike prices

White House economic adviser Larry Kudlow said that President Donald Trump’s decision to tighten U.S. sanctions on Iranian oil will not result in higher oil prices.

“I don’t see any palpable impact. The world is awash with oil,” Kudlow said during an appearance at the National Press Club.

Oil prices on Tuesday hit their highest level since November after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers, most of them in Asia, to continue importing limited volumes.

The White House said after its Iran move it was working with Saudi Arabia and the United Arab Emirates to ensure oil markets were “adequately supplied” but traders worried about tight supplies. (Reporting by Alexandra Alper and David Alexander; Writing by Doina Chiacu; Editing by Tim Ahmann and Alistair Bell)

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