Dow Energy Stocks Boom as Trump Shocks Oil Market


Dow Energy Stocks Boom as Trump Shocks Oil Market

donald trump iran oil price dow djia

Two key energy stocks in the Dow Jones Industrial Average boomed on Monday after the Trump administration shocked the global oil market. | Source: AP/AFP. Image Edited by CCN.

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ByCCN: The global energy market quaked on Monday after theTrump administrationtook aim at Iran, yanking lucrative sanctions exemptions with the explicit goal of bringing “Iran’s oil exports to zero.” As oil prices spike toward six-month highs, the stunning policy reversal has buoyed two key energy stocks in theDow Jones Industrial Average.

Trump Yanks Sanctions Exemptions from Iran’s Oil Customers

The White House explained that it hoped to cripple the rogue Iranian regime by removing its “principal source of revenue.”

Previously, the Obama and Trump administrations had given special exemptions to major Iranian customers such as China, India, and South Korea, allowing them to continue importing Iranian oil without violating US sanctions on the Islamic republic.

No longer.

“President Donald J. Trump has decided not to reissue Significant Reduction Exceptions (SREs) when they expire in early May,” the White House said in a statement. “This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue.”

Oil prices surged on the unexpected news, which tightened the global crude supply at a time when prices had already beengrinding higher.

brent crude oil price, donald trump iran

Brent crude jumped on Monday after the Trump administration ramped up sanctions on oil-rich Iran. | Source: Yahoo Finance

That Trump caused oil prices to spike was more than a bit ironic, given that the president hasput pressure on OPECand other oil producers to ramp up crude output and give US consumers some relief at the gas pump.

Writing on Twitter, Trump continued to sing that same tune. He promised that the Saudi-led OPEC would “more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil.”

He also blamed former Secretary of State John Kerry for dragging the US into an uneasy political cease-fire with Iran in the first place.

Saudi Arabia and others in OPEC will more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil. Iran is being given VERY BAD advice by@JohnKerryand people who helped him lead the U.S. into the very bad Iran Nuclear Deal. Big violation of Logan Act?

— Donald J. Trump (@realDonaldTrump)April 22, 2019

Dow Energy Stocks Jump on Reduced Oil Supply

Regardless, the renewed sanctions push bolstered several key energy stocks in the Dow Jones Industrial Average, namely Exxon Mobil Corp and Chevron Corp.

Exxon earned the biggest bump, spiking 2.12 percent from last week’s close. XOM shares last traded at $82.85. Chevron, meanwhile, climbed 1.61 percent to $121.80.

chevron exxon stock, dow, trump iran

Chevron and Exxon bolstered the Dow on Monday. | Source: Yahoo Finance

However, at least as of the time of writing, the Chevron-Exxon bump had failed to launch the Dow into positive territory following adismal open.

Three stocks – Travelers Companies Inc, Pfizer Inc, and Nike Inc – lost at least 1.15 percent, and two-thirds of the DJIA’s 30 members posted declines.

Altogether, the Dowdropped 27.03 pointsor 0.1 percent to 26,532.51.

About The Author

Josiah Wilmoth

Josiah is the US editor at CCN. In a past life, he taught Herodotus and Boethius to high school students. He holds long-term investment positions in bitcoin and other large-cap cryptocurrencies. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.

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