Oil Markets Yawn As Iran Sanctions Come Into Effect

A U.S. economic sledgehammer is falling on the Islamic Republic of Iran and global energy markets couldn’t care less – at least for now. Brent crude oil futures are up a meager $0.62 from their $72.61 open – bringing the benchmark to $73.23 just 12 hours into the first official day of renewed sanctions. Brent’s American cousin, West Texas Intermediate (WTI), is trading up $0.56 to $63.70 a barrel on the New York Mercantile Exchange. So why is the Trump administration’s widely-touted plan to remove more than 2.0 million barrels per day (b/d) of Iranian exports from global supply not causing a market shockwave?