President Donald Trump said that the U.S. will withdraw from the 2015 agreement with Iran that placed curbs on its nuclear program and reinstitute financial and economic sanctions on the Islamic Republic.
Calling the deal negotiated by his predecessor Barack Obama, "horrible", "one-sided" and "disastrous, Mr Trump said the U.S. will enforce the "highest level of economic sanctions" and will also sanction any countries that assist Iran develop nuclear weapons.
"The Iran deal is defective at its core", said the President, who noted that the U.S. was "ready, willing and able" to negotiate a "new and lasting deal" with Iran.
The Iranian government has ruled out any new negotiations saying that the agreement is still in force with five of the original members, China, France, Russia, the United Kingdom and Germany, even if the United States leaves.
The move by President Trump was widely expected despite last minute attempts by U.S. allies, notably France to change the President's mind and market reaction was muted.
West Texas Intermediate, the U.S. crude standard, ended the day at $70.04 a barrel almost exactly where it had opened, $70.03.
Immediately before the early afternoon announcement from the White House, WTI was trading aroundt $68.75. After President Trump's remarks the price moved as high as $70.40 before settling around $70.00 heading into the New York close.
The most volatile moment in Tuesday's action came from an erroneous late morning CNN report which stated that the U.S would impose new sanctions on Iran but not withdraw from the agreement. WTI dropped from $69.87 at 11:00 am as low as $67.73 just 15 minutes later before gong to ground around $68.75 waiting for the President's comments.