Today, oil prices dropped to $83 a barrel after the United States said it is actively considering waivers on the oil sanctions against Iran, potentially easing the current strain on supply and allowing Iranian oil exports to keep flowing.
The second round sanctions by the U.S. on Iran will take effect in November. These sanctions will focus on Iran’s energy sector. The Trump administration forecasts that it will persuade the countries that import Iranian oil to cut as much as 1 million barrels a day when the sanctions begin in early November. The major importers of Iranian oil (China, India, South Korea and Japan) are all situated in Southeast Asia and are allies with the United States.