RBC Expects Biden Administration to Push Iranian Oil Sanctions

The US will likely tighten sanctions on Iranian crude in response to the Israel conflict according to RBC’s Helima Croft in a CNBC interview.

• Croft said the West and the Biden administration would, “at a minimum,” consider a retaliatory gesture of curbing Iranian exports.
• “The argument is, can you continue to allow Iran to keep the bank open for groups like Hamas? So, I think the Biden administration is going to have to tighten those sanctions.” She added.
• The comments come ahead of a potential ground offensive that global leaders are trying to avoid, the outcome of which will likely guide international policy in the region such as potential sanctions efforts.
• The US has shown reluctance to enforce sanctions on Russian oil, only targeting tow vessel so far, while it has loosened sanctions on Venezuela as it aims to keep barrels on the market amongst OPEC+ tightening.
• Oil prices have eased this week on the back of lowered fears around a Middle East spillover at present but the initial price premium following the Hamas attack in Israel remains priced in.
• Brent DEC 23 down -0.1% at 87.97$/bbl
• WTI DEC 23 down -0.3% at 83.48$/bbl