Iran’s oil exports will not come down to zero

The US will find it difficult to cut Iran’s oil exports completely as the oil market is already tight and rival producers cannot make up the shortfall, a top Iranian official said.

Iran’s Opec governor Hussain Kazempour Ardebili said that a “supply shortage” meant that the US would not be able to meet its zero export target. “There is no spare capacity anywhere,” he said.

Washington is seeking to cut Iranian oil exports to zero by November as it reimposes sanctions, and is encouraging producers such as Saudi Arabia, other Opec members and Russia to pump more to meet the shortfall. The expected loss of Iranian oil, declining supply from Venezuela and other outages are boosting crude prices, which hit $80 a barrel, the highest since May.