Iranian oil exports surge ahead of US sanctions

Cornelia Mascio
Mag 16, 2018

Essentially, any nation that fights the USA on this decision will be, in effect, choosing Iran over the United States and this is highly unlikely.

Trump said new economic sanctions will be enforced against Iran. For Boeing, that means dropping out of $20 billion worth of contracts to modernize Iran's aging fleet of passenger planes. "There is no one who will realistically choose Iran over the USA", said energy consultancy FGE. A French government spokesman said European Union partners could fight the sanctions under world trade rules. "The Treasury Department thanks the UAE for its close collaboration on this matter".

President Trump had last Tuesday announced the withdrawal of the USA from the Iran nuclear deal.

President Donald Trump repeated a misleading claim about Iran's military budget Saturday, saying it had increased by more than 40 percent since the negotiation of the Iran nuclear deal.

Earlier this month, the International Atomic Energy Agency (IAEA) reiterated that it had seen "no credible indications of activities in Iran" relevant to nuclear weapons development after 2009.

Le Maire said he was seeking concrete exemptions for countries already present in Iran, including Renault, Total, Sanofi, Danone and Peugeot.

Iran was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its suspected nuclear programme relegated it to the 7th spot in the subsequent years.

Donald Trump
GETTY DONALD TRUMP The US President axed the Iran deal sparking fury in the Middle East

Certain waivers can be negotiated, but the USA did not say what goods or countries might qualify.

The American president's withdrawal, as well as increasing investments into alternative energy, sent prices soaring last week to their highest level since 2014, the NZ Herald reported.

There is some chatter in the markets suggesting Kuwait and Iraq as two producers with the best ability to raise output quickly in response to any fall in Iranian exports.

Royal Navy hero Admiral Lord West told Daily Star Online the decision by US President Donald Trump to axe the agreement was "extremely dangerous". They could risk losing access to the U.S. market and face fines if they choose to do business with Iran.

OPEC is in no hurry to decide whether to pump more oil to make up for an expected drop in exports from Iran after the imposition of new United States sanctions, four sources familiar with the issue said, saying any loss in supply would take time. The U.S. has advised other countries to "significantly reduce" their purchases of oil from Iran. This would essentially end the OPEC-led deal to trim production.

"Oil's always prone to rise on geopolitical tensions and the ongoing conflict between Iran and Israel is not something that can be resolved in the short-term", Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone in Seoul.

Since the Iran nuclear deal was struck in 2015, it was mainly European companies that moved back in to sign deals with Iran, as Europe has traditionally had stronger business and diplomatic ties with the country than the U.S.

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