Investment bank Goldman Sachs said in a note that Trump's announcement brought upside risks to its forecast that Brent crude will hit $82.50 USA a barrel by the summer. "If we achieve the deal's goals in cooperation with other members of the deal, it will remain in place".
However, the deal came with time limits and did not address Iran's ballistic missile program or its support for militant groups across the region branded as terrorists by the West. Trump has repeatedly pointed to those omissions in referring to the accord as the "worst deal ever". "If I allowed this deal to stand, there would soon be a nuclear arms race in the Middle East". The prospect of free access to worldwide oil markets and accelerating flows of trade and investment were among the carrots that persuaded the Islamic Republic's leaders to sign up to an agreement capping its nuclear program. Other nations that do business with Iran also could face USA sanctions.
There were reports earlier in the day that Trump had told French President Emmanuel Macron that he planned to withdraw from the Iran nuclear deal and reinstate sanctions against the country, as well as additional economic sanctions, according to a person who had been briefed on the conversation.
Pompeo returned to the United States overnight after meeting with North Korean leader Kim Jong Un and helping to return three Americans who had been detained there.
On Tuesday, Mr Trump explicitly warned that he would seek to hit European firms that continued to trade with Tehran - attracting a strong rebuke from European leaders and potentially opening a chasm between the Western alliance partners.
The pact, better known as the Joint Comprehensive Plan of Action (JCPOA), between Iran and six world powers - the U.S., the UK, France, China, Russia and Germany - is essentially a bad one that rewarded a rogue regime.
Trump's decision came on the heels of visits to the U.S. by French President Emmanuel Macron, German Chancellor Angela Merkel and British Foreign Secretary Boris Johnson. Its state refiners had chalked out plans to nearly double oil imports from Iran this fiscal year, drawn to the virtual free shipping on oil sales offered by Iran, Reuters reported last month.
Washington's actions were "flagrantly trampling on the norms of global law", Russia's foreign ministry said. He said May 9, "We are now facing a political system that did not remain committed to its own signature on the JCPOA, which was not desirable for our nation". Iran President Hassan Rouhani said he has instructed his nuclear agency to be prepared to resume enriching uranium to industrial levels.
What does this mean for India?
Analysts' estimates of the possible reduction in Iranian crude supplies as a result of any new USA sanctions range from as little as 200,000 bpd to as much as 1 million bpd, with most impact from 2019 as sanctions take time to be imposed. The relationship between the two goes beyond energy. Daryl G. Kimball, the group's executive director, said Trump's announcement "is an irresponsible act of foreign policy malpractice" and "a twofold abrogation of U.S. commitments".