The "War Premium" for crude oil deflated by $10 per barrel after Washington signaled more time for diplomacy in dealing with Iran on Feb 1st, to build a wider international consensus against the Ayatollah's regime.
However, China and Russia might veto sanctions to protect their huge economic interests. China imports 14% of its oil from Iran, and Moscow has pending deals of $100 billion with the Ayatollah.
But crude oil rebounded by $2 per barrel on Feb 16-17th, after the French Foreign Ministry accused Iran on Thursday of pursuing a secret military nuclear program, drawing a swift rebuke from Tehran ahead of talks in Moscow on Feb 20th on a Russian proposal for resolving the dispute. "The sensitive nuclear activities currently under way in Iran as regards conversion and enrichment cast doubt upon their peaceful and civilian nature" Paris said.
Iran's chief nuclear negotiator Ali Larijani warned the West not to demonize Tehran. Iran resumed small-scale feeding of uranium gas into centrifuge enrichment machines on Tuesday after a break of 2-1/2 years.
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