Trump wants to impose sanctions gradually on Iran's oil

Sean Reid
November 7, 2018

"The Iranian regime has a choice: It can either do a 180-degree turn from its outlaw course of action and act like a normal country, or it can see its economy crumble", Pompeo said at the press conference.

Following the U.S. exit, Iran and the remaining parties launched talks to save the accord.

The deal had seen most worldwide financial and economic sanctions on Iran lifted in return for Tehran curbing its disputed nuclear activity under United Nations surveillance. "I don't want to lift oil prices".

On Monday, the US government officially re-imposed all of the sanctions on Iran that were suspended as a result of the nuclear deal signed during President Barack Obama's tenure.

On Monday, the U.S. restored sanctions targeting Iran's oil, banking and transport sectors and threatened more action to stop what Washington calls its "outlaw" policies, steps Tehran calls economic warfare and vowed to defy. U.S. crude futures were up about one per cent at $63.85 a barrel. State department officials expressed American desire to bring Iran's oil export, which makes up 80 per cent of its revenue, to zero in the coming months.

The sanctions also cover 50 Iranian banks and subsidiaries, more than 200 people and vessels in its shipping sector, Tehran's national airline, Iran Air, and more than 65 of its aircraft, a US Treasury statement said.

While Iran's crude exports could fall to little more than 1 million barrels per day (bpd) in November, traders and analysts say that figure could rise again from December as importers use their waivers to order crude from Iran.

South Korean refiners have reduced their oil imports from Iran since the USA pulled out of the Joint Comprehensive Plan of Action, a nuclear deal with Iran, in May.

Japan's largest oil company JXTG Nippon Oil & Energy Corporation is considering the possibility of resuming Iranian oil imports, Michiko Ono, the company's spokeswoman, told Sputnik on Tuesday in light of Washington's announcement of exemptions from the Iran sanctions.

Iran's clerical rulers dismissed the curbs.

China, India, South Korea, Japan and Turkey - all top importers of Iranian oil - are among eight countries given temporary exemptions from the sanctions to ensure crude oil prices are not destabilised.

South Korea, the world's fifth-biggest crude oil buyer, mainly imports an ultralight form of crude oil, condensate, from Iran, which accounts for 74 percent of its oil purchases from that country.

This story has been sourced from a third party syndicated feed, agencies. The Iranian regime to date since May has lost over United States dollars 2.5 billion in oil revenue, he said.

"[The] infrastructure allows European companies to avoid USA sanctions in the future ... long-term it's very worrying for the future of US sanctions infrastructure", Ashford said.

United States officials have said the countries given temporary exemptions from the sanctions will deposit Iran's revenue in escrow accounts and Tehran will be able to use the funds for humanitarian purposes.

He said Washington's violation of worldwide law has made the US more isolated than ever. Under the Obama-era deal, involving five permanent members of the UN Security Council and Germany, Iran had agreed to stop its nuclear programme in exchange for relief from economic sanctions.

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