Analysts at Danske Bank think that the U.S. is planning more sanctions against Iran in order to force the country back to the negotiating table and agree on a deal to ensure Iran never requires nuclear weapons.

• “US Secretary of State Michael Pompeo will visit Saudi Arabia and the UAE to discuss a global coalition against Iran. Iran has already seen a sharp drop in oil production following the first round of US sanctions, which has tightened world oil supply.
• New sanctions are therefore likely to be felt primarily in Iran and to a lesser extent in the rest of the world. Brent is trading above USD65/bbl. However, we reckon this is more a function of the recent recovery in risk sentiment and weakening of the USD with the outlook for upcoming rate cuts in the US.”