The US has imposed sanctions on Iranian oil exports from November last year, after unilaterally withdrawing from nuclear deal with Iran, while at the same time mobilising other oil exporting countries to increase supply, including Saudi Arabia and the United Arab Emirates.
Global oil prices have reacted swiftly to news of U.S. sanctions, with Brent oil prices rising by nearly 2.7%. Iran has denounced US sanctions, calling it "principally illegal", and said it had contacted European allies and neighbouring countries to work out an appropriate solution. Iran also warned if the US's attempt to strangle Iranian economy continues, the country will consider closing the Strait of Hormuz, an important transportation route between the Persian Gulf and the Gulf of Oman.
