US crackdown on Iranian oil raises risks in fragile global climate

CRUDE oil prices, already vulnerable to potential supply shocks, hit a six-month high this week after Washington caught the market by the backfoot and revoked sanctions waivers on several countries that buy oil from Iran - the third-largest oil producer in Opec (Organization of the Petroleum Exporting Countries).

The US move was a surprise as the market had expected a renewal of the waivers, albeit a reduced quota, when they expire in early May, and is aimed at piling on "maximum economic pressure" against the regime by choking off Tehran's oil revenues.

With an expected loss of over one million barrels a day of Iranian supply - or maybe less if Tehran is able to circumvent the decision and continue exporting oil - all eyes are now on the next move by Opec amid pressure from Washington for the alliance to ease supplies.