Netanyahu calls start of new Iran sanctions a 'historic day'

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 sanctions target third parties that deal with Iran.

This regime of exceptions is similar to what the United States practiced from 2012 to 2015, prior to the agreement on the iranian nuclear negotiated under Barack Obama.

The move restores, and strengthens, sanctions lifted under a 2015 global agreement on Iran's nuclear program from which Washington withdrew in May.

Aside from restrictions on oil imports, the administration added more than 700 names - including individuals, entities, vessels and aircraft linked to the energy and financial sectors and other segments of Iran's economy - to the United States list of sanctioned entities.

China was given a waiver to import around 360,000 bpd from Iran during the exemption period, sources told Reuters, while South Korea was given a daily quota of around 130,000 bpd, according to Platts. "So that's a pretty big impact for a country which derives 80% of its tax revenue from oil imports".

Trump said the deal permitted Iran to continue its secret development of nuclear weapons and gave it money to support violence throughout the Middle East.

Trump said in a statement Friday that the goal is to force Iran's leaders to choose either to abandon what he calls Iran's "destructive behavior" or to "continue down the path toward economic disaster".

"The US maintains it will do that but actually I think it's speaking slightly with a forked tongue because, although they will sometimes allow pharmaceuticals to get through and not be subject to American sanctions, the banks will not finance such trade and will not process payments".

The United States will exempt China, India and Japan from oil sanctions on Iran, Secretary of State Mike Pompeo said on Monday, while vowing to be "relentless" in pressuring Tehran.

USA officials have said the aim of the sanctions is eventually to stop all Iran's oil exports.

But as Mr Rouhani stepped up the rhetoric, comparing Iran's current situation with the 1980s war against Iraqi dictator Saddam Hussein, Iran's foreign ministry shrugged off the re-imposition of sanctions, saying it was nothing new and that the country had gone through a wider range of sanctions in the past.

A senior State Department official said Washington has been careful in applying pressure against Tehran so as not to drive up oil prices.

USA president Trump has taken a hardline against Iran since taking office.

But they were opposed by other signatories to the 2015 nuclear deal - Britain, France, Russia, China, Germany and the EU.

However she said it was "yet to be seen" if these measures would be effective when balanced against the risk of being cut off from the USA market.

Trump administration provides details on sanctions against Iran that snapped back into place on Monday.

Countries that continue to import Iranian oil and do not have a U.S. waiver risk USA sanctions forbidding Americans from doing business with their companies and cutting off access to the United States financial system.

According to Pompeo, more than 20 importing countries and regions have "zeroed out" their imports of crude oil already. But traders and analysts say that figure could rise from December as importers use their waivers.

Despite such efforts, condensate from Iran is still preferred by local oil-refining and chemical companies due to its lower prices. "Today, Iran is able to sell its oil and it will sell", President of Iran Hassan Rouhani said.

Recommended News

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.