Crude prices rise despite Saudi pledge to ‘mitigate’ effect of U.S. sanctions on Iranian exports

President Trump’s decision to scrap the Iran nuclear deal and reimpose sanctions has sent global buyers of Iranian oil scrambling to line up other sources of supply.

Saudi Arabia, the world’s largest crude oil exporter and leading force in the Organization of the Petroleum Exporting Countries, issued assurances overnight that it would provide some cushion for the loss of Iranian supplies.

“The kingdom will work with major producers and consumers within and outside OPEC to mitigate the effects of any supply shortages,” the state-run Saudi news agency reported, citing a statement issued by an official in the energy ministry.

But oil traders weren’t convinced. Crude oil prices climbed on Wednesday, with the benchmark West Texas Intermediate grade up $2.19, or 3.2 percent, to $71.25 a barrel for June delivery.

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