Commodities Corner: Why the oil market doesn’t care much about new U.S. sanctions on Iran

The White House followed up on warning issued earlier this week and imposed new sanctions on Iran Friday, but the oil markets again showed little reaction to the move on one of the world’s largest crude producers.

In a statement Friday, National Security Advisor Mike Flynn said the U.S. has “sanctioned twenty-five individuals and entities that provide support to Iran’s ballistic missile program and to the Islamic Revolutionary Guard Corps’ Quds Force.”

He claimed that the sanctions were put into place to target Iran’s “lawless behavior,” which include “harassment of vessel traffic and repeated weapons tests.”

But oil prices showed little reaction to the news Friday, with an initial move higher quickly dissipating.

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