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Oil prices rise as UK, Germany and France urge US rethink on Iran deal

Oil prices rose more than two per cent this morning, in the wake of Donald Trump's decision to withdraw from the Iran nuclear deal.

Speaking from the White House last night, the US President said he believed there was no way to "prevent an Iranian nuclear bomb under the decaying, rotten structure of the current agreement”.

“Irans bloody ambitions have grown only more brazen,” he added.

Shortly after the announcement, US Treasury secretary Steven Mnuchin said that licenses for Boeing to sell aircraft and components to Iran will be revoked as a result of the reimposed sanctions.

“Under the original deal, there were waivers for commercial aircraft, parts and services and the existing licences will be revoked,” Mnuchin said.

Trump had been talking up the anti-deal rhetoric for months. However the move has still had an impact on prices, with WTI Crude up 2.2 per cent to $70.6 a barrel, while Brent Crude was up 2.4 per cent to $76.7 a barrel.

Prime Minister Theresa May, German Chancellor Angela Merkel and French President Emmanuel Macron issued a joint statement noting their "regret" at the move and urging Trump to rethink his decision.

"This agreement remains important for our shared security," the world leaders said, stressing the deal had been "unanimously endorsed by the UN Security Council".

"This resolution remains the binding international legal framework for the resolution of the dispute about the Iranian nuclear programme. We urge all sides to remain committed to its full implementation and to act in a spirit of responsibility," they added.

Pointing to the fact that Iran is abiding by the restrictions set out in the deal, May, Merkel and Macron added: "The world is a safer place as a result… Our governments remain committed to ensuring the agreement is upheld, and will work with all the remaining parties to the deal to ensure this remains the case including through ensuring the continuing economic benefits to the Iranian people that are linked to the agreement."

As well as urging the US to reconsider, the trio encouraged Iran to "show restraint in response to the decision by the US", insisting it should continue to allow independent assessment of the country's nuclear programme. In response, "Iran should continue to receive the sanctions relief it is entitled to whilst it remains in compliance with the terms of the deal".

They acknowledged some of Trump's concerns should be addressed, noting that certain parts of the deal will expire in 2025.

"We and our Foreign Ministers will reach out to all parties to the JCPoA to seek a positive way forward."

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