Goldman Sachs analyst says oil market already priced in Iran supply disruptions before latest sanctions

Oil prices rose only modestly after the US announced additional sanctions on Iran because an existing blockade is already restricting Iranian oil exports, according to Goldman Sachs commodities analyst Daan Struyven.

Struyven said the blockade of Iranian ports and oil exports has already reduced the amount of crude reaching global markets. That limits the immediate supply impact of further sanctions.

The Goldman Sachs co-head of global commodities research discussed the market reaction during a Bloomberg television segment. He said the market was already pricing in significant disruption from Iran’s reduced access to export routes.

Struyven said investors could still face volatility in crude prices and may need to hedge exposure to swings in the oil market.

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