• The Trump administration announced it will no longer grant sanctions waivers to any country that is currently importing Iranian oil.
  • The move threatens to wipe roughly 1 million barrels per day off the market.
  • The move comes as oil markets are already tightening and the cost of crude and gasoline is on the rise.

Oil prices surged about 3% at midday on Monday, hitting fresh 2019 highs, after the Trump administration announced that all oil buyers will have to end imports from Iran in just over a week or be subject to U.S. sanctions.

The administration said the State Department will cease granting sanctions waivers to any country still importing Iranian crude or condensate, an ultra-light form of crude oil, after May 2.