China to continue Iran trade despite new USA sanctions

Targeting Iranian oil exports will hurt Tehran finances but also the oil market's balance

Targeting Iranian oil exports will hurt Tehran finances but also the oil market's balance

The US has given temporary exemptions to eight countries - including India, Japan and Turkey - to continue buying oil in a bid to avoid disrupting their economies and global markets.

Iranian President Hassan Rohani said in speech broadcast on state TV on Monday that Iran would break the sanctions and continue to sell its oil. According to the US Treasury, the sanctions brings the total number of Iran-related targets to 900, the highest ever. It also covers an Iranian airline, Iran Air, and more than 65 of its aircraft.

"The impact of the sanctions is going to be largely softened as a result of this allowance", said Sukrit Vijayakar, director of Indian energy consultancy Trifecta. "Today the U.S. is executing on the final actions to withdraw from the Obama administration's fatally flawed Iran deal", Mr Mnuchin said.

They blamed Israel for the attack and said it targeted Iran's communications infrastructure, without elaborating.

At the same time, US President Donald Trump's National Security Adviser John Bolton said more sanctions are on the way, according to Fox Business Network, but gave no other details.

Pompeo said more than 20 countries have already cut their oil imports from Iran, reducing purchases by more than 1 million barrels per day.

House Democratic Whip Steny H Hoyer said, "Rather than achieving its stated goal of eliminating Iran's oil exports altogether, the administration has issued "exemptions" for major Iranian oil importers, allowing Iran to earn billions of dollars from oil sale".

Iran's Deputy Foreign Minister Seyed M. Kazem Sajjadpour said on Tuesday the United States has the "very simple naive" view that Iran will wilt under the pressure.

"The objective of the sanctions is to diminish the regime's capacity to threaten the region", Mr Hook said, calling them "the toughest sanctions that have ever been imposed" on Iran.

Iran's economy has been hit hard, with the country's currency, the rial, plummeting in value, leading to some street protests in Iranian cities.

Iran's exports peaked at 2.8 million barrels per day (BPD) in April, including 300,000 barrels per day of condensate, a lighter form of oil that when underground tends to exists as gas.

According to Jim Ritterbusch, president of Ritterbusch & Associates, trade wars are also playing their part in deflating energies demand: "The magnitude of recent selling is strongly suggesting that global oil demand is weaker than expected as a result of tariff issues, especially between the USA and China".

"We'll see what happens with Iran".

Protecting the terms of the JCPOA was important not just for Iran but the global community, he added, making it necessary for other countries to counter not just the United States sanctions but the ideas behind them. However, SWIFT announced today that it would shut out the 50 Iranian banks sanctioned as part of today's sanctions announcement after Treasury Secretary Steven Mnuchin threatened penalties on participating banks and board members Friday.

"Our politics is very domestic - it's not as if Washington coughs and we get a cold", he said.

Even during the last set of sanctions between 2012 and 2015, India had continued to import oil from Iran. The United States said on November 2 it will temporarily allow eight importers to keep buying Iranian oil.

"This is an economic war against Iran".

Supporters of the agreement say Iran remained compliant with the deal.

Foreign companies and banks are largely unwilling to make enemies of the US Treasury, and most global firms that set up in Iran after the 2015 deal have been forced to leave, including France's Total, Peugeot and Renault, and Germany's Siemens.

Japan had sought a waiver during negotiations with the U.S., saying that its imports of Iranian oil had been falling recently.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.