Gold, Silver and Oil Jump As EU Bans Iranian Oil And Precious Metals Trades

Gold, silver and oil prices are rising this morning on reports the EU have agreed to ban imports of Iranian oil. Gold and silver rose following a Reuters report that the EU has agreed to freeze assets of the Iranian central bank and ban trades in gold and sliver with the Iranian central bank.

EU countries that have existing oil contracts with Iran will have until July 1 to complete them.

The EU will conduct a review of these new sanctions prior to May to see whether or not they are effective and if EU states can find sufficient oil from alternative sources. “There will be a review of the embargo before May,” one EU official said.

These sanctions come as the U.S. and other western countries increase pressure on Iran to halt or scale back its nuclear program. Western countries believes Iran is trying to build nuclear weapons, but Iran maintains it is a peaceful nuclear program meant only for energy.

“We want them to think ‘This is really getting very, very serious now’,” said one European diplomat.

These sanctions are not likely to have an immediate impact on Iran since existing contracts can be fulfilled.

While these sanctions hurt the Iranian government, they are also hurting the people of Iran who have seen the price of basic goods skyrocket in recent days. This could lead to more anti-US and anti-Europe sentiment from the Iranian people.

In response to Iran’s 2.6 million barrels of oil taken off the international market, Saudi Arabia said it will increase production by 2 million barrels per day.

written by

Kyle Pinder has has over five years trading and research experience in the large cap space. While still in grad school, Kyle trades daily and keep Active Investor up to date with the latest breaking news coming out of Wall Street and Washington.
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