The United States on Monday said it will eliminate in May all waivers granted to eight economies allowing them to buy Iranian oil without facing US sanctions, as it ratcheted up pressure to choke off all oil revenues of Tehran. The decision, taken by President Donald Trump, has sent oil prices to their highest since November 1. Secretary of State Mike Pompeo on Monday reiterated that Washington's goal was to bring down exports of Iranian oil to zero and added the United States had no plans to give any grace period beyond May 1 for countries to comply. "Today I am announcing that we will no longer grant any exemptions," Pompeo said in a briefing. "We are going to zero. We're going to zero across the board." International benchmark Brent rose 2.6 percent to $73.87 a barrel after earlier touching $74.31, highest since early November. US crude futures gained 2.4 percent, or $1.52 a barrel, to $65.52. It earlier touched a high of $65.87, a level not seen since late October. Saudi Arabia is committed to "stablize" the oil market, said Minister of Energy, Industry and Mineral Resources Khalid Al-Falih. "The Kingdom reaffirms its longstanding policy, which seeks to stablize the markets at all time," he said in a statement carried by Saudi Press Agency. He said Saudi Arabia would coordinate with other oil producers to ensure an adequate crude supply and a balanced market. "Saudi Arabia is closely monitoring the oil market developments following the recent statement from the US government regarding oil export sanctions on Iran," Falih said. "Saudi Arabia will coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance." Meanwhile, the Revolutionary Guards repeated their threat to close the strategic Strait of Hormuz, Iranian media reported. "According to international law, the Strait of Hormuz is a marine passageway and if we are barred from using it, we will shut it down," the semi-official news agency Fars quoted General Alireza Tangsiri as saying on Monday. "In case of any threat, we will have not even an iota of doubt to protect and defend the Iranian waters," Tangsiri added. The US reimposed sanctions in November on exports of Iranian oil after Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers last May. Along with sanctions, Washington granted waivers to eight economies that had reduced their purchases of Iranian oil, allowing them to continue buying it without incurring sanctions for six more months. They were China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece. — Agencies
