Trump's Iran Sanctions Drove Oil Higher and Forced European Companies Out of Iranian Markets

On May 8, 2018, President Trump withdrew the U.S. from the Iran nuclear deal and re-imposed sanctions. Brent crude rose immediately as traders priced in reduced Iranian exports—roughly 2.5 million barrels daily. European firms in energy, autos, and aviation faced discrete losses. The dollar strengthened against emerging-market currencies. U.S. secondary sanctions proved far more powerful than EU blocking statutes: access to dollar clearing systems outweighed Iranian revenues, forcing European banks to exit Iranian counterparties.