Iran will sell its oil despite United States sanctions - President Rouhani
05 November, 2018, 23:33 | Author: Teresa Adams
Fresh U.S. sanctions against Iran, labeled by President Donald Trump as the "strongest ever", have taken effect against the country's energy, shipping, shipbuilding, and financial sectors.
Traders said prices have been coming under pressure since it became clear that Washington was allowing several countries to continue importing crude from Iran despite the sanctions, which officially started on Monday.
The deal - agreed by the US, China, Russia, France, Germany and the United Kingdom - brought about the lifting of most global financial and economic sanctions on Iran in return for Tehran curbing its disputed nuclear activity under UN surveillance.
U.S. President Donald Trump has suggested he is open to a new comprehensive deal with Iran, saying that till then the toughest-ever sanctions on the West Asian country that kick off on Monday would continue.
"There are a lot of experts ... that said President Trump's policy wouldn't have any impact because it was just the United States and other countries weren't participating", Pompeo said. Under the Obama-era deal, involving five permanent members of the UN Security Council and Germany, Iran agreed to stop its nuclear programme in exchange for relief from economic sanctions.
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"We are working diligently to make sure we support the Iranian people and that we direct our activity towards ensuring that the Islamic Republic of Iran's malign behaviour is changed", US Secretary of State, Mike Pompeo, told Fox News Sunday. "Essentially the sanctions that were taken off are snapping back", said Katherine Bauer, the Blumenstein-Katz Family Fellow at the Washington Institute.
The Trump administration is restoring all sanctions lifted under the 2015 nuclear deal in a bid to pressure Iran.
"Watch the efforts that President Trump's policies have achieved".
Oil prices dipped on Monday as the start to USA sanctions against Iran's fuel exports was softened by waivers that will allow some countries to still import Iranian crude, at least temporarily. "Our goal remains getting countries to zero imports of Iranian oil".
The US has been gradually re-imposing sanctions, but analysts say this latest round is by far the most significant.
If the United States had not granted waivers to China and some of the other countries, they would have also ignored the sanctions.
Part of the explanation lies in the ambiguous position of the USA, which initially insisted that the sanctions were created to reduce Iranian exports to zero barrels, but has since has softened its position.
He said he could not rule out that the US administration would extend the waivers beyond six months. The renewed sanctions are designed "to paralyse the (Iran's) economy and keep it backwards".
There have also been concerns about the price and supply of oil globally, meaning that without some Iranian oil the price might increase too fast - the price already having been much higher in recent months.
In 2012, South Korea received a waiver on USA sanctions by importing limited amounts of Iranian oil during the previous round of sanctions that were lifted in early 2016.
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