Oil prices soaring

Oil prices have hit a six-month high of $74.64 following an announcement by the United States to end all export sanction waivers on Iranian oil imports.

Brent crude, the international oil benchmark, increased by 0.8%.

The sanctions aim to drop Iran’s oil exports to zero – revoking it as the government’s main source of revenue.

According to the White House, waivers for major importers such as China, India, Japan, South Korea and Turkey will expire in May.

Thereafter countries will have to face US sanctions.

South Africa currently imports 6% of its oil from Iran.

Although the effect on SA may not be as big as other regions, the price of fuel may see a slight shift.

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