Crude oil

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Trump’s Iran strategy collides with oil market realities

oil tankers off the coast of Iran
Ships at Iran's Port of Kharg Island Oil Terminal. Photo: Fatemeh Bahrami/Anadolu Agency/Getty Images

The Trump administration must decide by May 2 whether to allow Iran to continue exporting crude oil — a decision with huge implications for Washington’s Iran strategy and the oil market.

The big picture: Since withdrawing from the nuclear deal last May, the U.S. has steadily ratcheted up economic and political pressure on Iran. The core component of the Trump administration’s “maximum pressure” strategy is reducing the Islamic Republic's oil exports, which provide provide a third of government revenues.

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Data: OPEC; Chart: Axios Visuals