Oil price hikes as Iranian deal in trouble

Prices of crude oil increased by two per cent yesterday ahead of US data which is expected to show strong gasoline demand, Palestinian Al-Resalah newspaper reported.

Crude oil prices were supported by signs of troubles regarding the Iranian nuclear deal that could delay Tehran’s hopes of lifting Western sanctions on its oil exports. The strong rise of the US dollar also affected the hike.

The price of oil products such as gasoline and ultra-low sulphur diesel rose more than crude oil, leading the hikes of the day. Gasoline rose 2.3 per cent to its highest level in two weeks.

According to Reuters, Iran’s parliament passed a bill banning UN inspectors from accessing its military sites and scientists. Monitors said this might delay Tehran’s ability to meet the deadline on a nuclear deal which has been set for 30 June. This would be crucial for resuming Iran’s crude oil exports.