Oil market on alert as Iran sanctions hit

Oil market on alert as Iran sanctions hit

The Trump administration announced Friday it will reinstate sanctions on Iranian institutions and companies as the next step of its exit from the multilateral nuclear deal.

The waivers will be valid for six months, during which time the importing country can buy Iranian oil but must deposit Iran's revenue in an escrow account. "We have advised SWIFT that Treasury will aggressively use its authorities as necessary to continue intense economic pressure on the Iranian regime and that SWIFT would be subject to USA sanctions if it provides financial messaging services to certain designated Iranian financial institutions", Mnuchin said. Turkey, a major destination for Iranian crude, could also be included.

The United States has vowed to end all sales of Iranian oil, the country's crucial export, as well as global banking transactions, snapping back sanctions lifted by Trump's predecessor as U.S. president, Barack Obama. "But, as you know, sanctions are starting on Iran and, Iran is taking a very big hit", he said.

The agreement saw Iran limit its controversial nuclear activities in exchange for sanctions relief. "U.S. licenses for the sale by Airbus and Boeing of commercial aircraft to Iran Air and other Iranian airlines have been revoked, causing cancellation of sales".

"But it remains uncertain whether Iran's economy will be damaged to the extent it was during 2012-2015, because the European Union and other countries are trying to keep the economic benefits of the JCPOA flowing to Iran in order to persuade Iran to remain in the JCPOA".

During the last sanctions period, China funnelled nearly all its Iranian transactions through the Bank of Kunlun, controlled by Chinese state energy group CNPC, which was sanctioned by the U.S. in 2012 but shielded the rest of the sector from penalties. Ayatollah Ali Khamenei said that despite military, economic and propaganda wars waged by the USA against Iran over the last four decades, "the U.S.is the defeated side and the Islamic Republic is the victorious party".

The US will grant partial exemptions, known as waivers, to eight governments on condition that any purchases from Iran are at "greatly reduced levels", Secretary of State Michael Pompeo said on Friday.

Nauru kids will never settle in Australia: Dutton
But the government has been "quietly" transferring children off Nauru, amid a public outcry and mounting concerns for their welfare.

The "US addiction to sanctions is out of control", Zarif wrote on Twitter.

Even if Iran can continue to sneak oil out of its ports, it will find it hard to get the cash into its accounts.

Mnuchin said today that SWIFT "would be subject to US sanctions if it provides financial messaging services to certain designated Iranian financial institutions" and that the U.S.

Indian Oil Minister Dharmendra Pradhan said his country and other leading oil importers would benefit from the USA waivers.

That could make it extremely hard for Iran to do business with other countries. Prices have since eased, aided by the United States decision to allow waivers for India, Japan, South Korea and others.

"If prices start to rise again or another major producer has difficulties, it could put pressure on the U.S. and lead to new exemptions", said Fabiani.

Related Articles

  • Nigerian Army embraces Trump's words to justify killing protesters

    Nigerian Army embraces Trump's words to justify killing protesters

    The Nigerian army posted the video on its account with a caption that read " Please watch and make your deductions ". The Nigerian Army has defended its use of fire power in the wake of attacks from protesters in the capital, Abuja.
    The curious case of Derrick Lewis, the UFC’s unlikely title challenger

    The curious case of Derrick Lewis, the UFC’s unlikely title challenger

    Their chicken challenge goes back to July when the fighters shared the dais after they both fought on the same pay-per-view card. And he'll be keeping an eye on his waistline - the one he expects to still be wrapped with the title belt after Saturday night.
    Ad on Bacon's health care vote is partly true

    Ad on Bacon's health care vote is partly true

    But the ACA is still the law of the land and financial assistance is still available for low and middle-income consumers. New to the mix of carriers this year is Oscar Health , which is offering competitively priced bronze and silver plans.
  • Iran summons Danish envoy over alleged deadly Tehran plot

    Iran summons Danish envoy over alleged deadly Tehran plot

    In Oslo, Rasmussen also stressed that "we want to preserve the nuclear agreement". Those countries might go beyond the European Union as U.S.
    Bonfire Night traditions: Why do we celebrate Guy Fawkes?

    Bonfire Night traditions: Why do we celebrate Guy Fawkes?

    The Bistro Cafe, Swinton Bivouac, will be serving warming burgers, hot dogs, hot drinks and alcoholic beverages from 6.30pm. The Big Bang Bonanza, organised by Bridport Round Table at Bridport Leisure Centre, takes place on Saturday, November 3.
    Dele Alli credits Mauricio Pochettino as reason he signed new deal

    Dele Alli credits Mauricio Pochettino as reason he signed new deal

    A "crazy game", as Burnley boss Sean Dyche described it, began with James Tarkowski gifting the opening goal to Marko Arnautovic. Pochettino was forced to alter his plans at Molineux with an early ankle injury ruining Mousa Dembele's 250th club appearance.
  • India vs West Indies, 1st T20I

    India vs West Indies, 1st T20I

    The seasoned Mumbai batsman was the second highest scorer behind Kohli, scoring 389 runs at 129.66, that included two hundreds. Rohit Sharma and Virat Kohli chased the target in just 14.5 overs despite the dismissal of Shikhar Dhawan early on.
    Magic Johnson

    Magic Johnson "Admonished" Luke Walton After Winless Two-Game Trip

    When you throw LeBron James into the drama known as the Real Lakers of Los Angeles, we knew the results would be spectacular. We've played some good teams and we've had a chance to win a lot of those games, unfortunately we haven't.
    Brazil To Move Israel Embassy To Jerusalem

    Brazil To Move Israel Embassy To Jerusalem

    The US and Guatemala have recently moved their embassies to Jerusalem, but most countries choose to remain in Tel Aviv. Israel occupied Jerusalem al-Quds in 1967 in a move never recognized by the worldwide community.
  • `Man eater` tigress Avni killed in Maharashtra

    `Man eater` tigress Avni killed in Maharashtra

    He added that there was unrest among local farmers and Adivasis after she had reportedly killed 13 people in the past two years. Some of the local people of Yavatamal celebrated Avni's death with firecrackers and candies , according to Times of India .
    Elon Musk complained about the worst year of my life

    Elon Musk complained about the worst year of my life

    He's called Apple the " Tesla graveyard " in the past, suggesting that Tesla employees that don't work out often land at Apple. Joe Rogan Experience/YouTubeElon Musk was interviewed on The Joe Rogan Experience podcast, where he smoked pot on camera.
    Where the Midterm Race Stands Days Before U.S. Vote: Election Countdown

    Where the Midterm Race Stands Days Before U.S. Vote: Election Countdown

    Trump, who has brought an unprecedented brand of populism and confrontational politics to the White House, clearly enjoys a fight. Even if the Senate is tied 50/50, the Republicans would win as Vice President Mike Pence has the tie-breaking vote.