New Iran sanctions bring higher oil prices

Iran Materials 3 January 2012 14:18 (UTC +04:00)

Azerbaijan, Baku, Jan. 3/ Trend M. Moezzi

Global oil prices climbed $1.5 following Washington's new sanctions against Iran, Mehr news agency reported.

On Tuesday U.S. crude prices increased $1.47 to over $100 a barrel. The price jump followed the United States' new sanctions against Iran.

Sanctions against Iran have proven ineffective and some countries have requested exemptions from the sanctions.

South Korea, a Washington ally, recently asked the U.S. to let it forgo sanctions against Iran. While South Korea's request was made publicly, other nations are sure to ask for exemptions in private.

On Saturday, the last day of 2011, U.S. President Barack Obama signed a law imposing sanctions against Iran's Central Bank. The new sanctions punish foreign institutions doing business with the Central Bank and essentially forces them to choose between doing business with Iran or the U.S.

The U.S. Congress granted Mr. Obama six months to impose the sanctions because the administration was worried about how they would affect the world's oil markets and economy.