Turkey and Iraq to get exemptions from U.S. sanctions on Iran
Turkey and Iraq to get exemptions from U.S. sanctions on Iran
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04 November, 2018, 17:34
"We think Trump will agree to China importing some volumes, similar to the treatment that India and South Korea receive", Clayton Allen of Height Securities said in a note on Friday.
USA secretary of state Mike Pompeo said Friday the exemptions were being given "only because they have demonstrated significant reductions in their crude oil and cooperation on many other fronts and have made important moves towards getting to zero crude oil importation". "U.S. licenses for the sale by Airbus and Boeing of commercial aircraft to Iran Air and other Iranian airlines have been revoked, causing cancellation of sales".
Even if Iran can continue to sneak oil out of its ports, it will find it hard to get the cash into its accounts.
Pompeo said the exceptions were temporary and allotted to countries that had made progress toward cutting their dependence on Iranian supplies.
Anas al-Hajji, a Houston-based oil expert, said the fall in Iranian exports was tough to assess but he expected "less than what most analysts are talking about". From this campaign not only India but other consuming nations will be benefitted.
Quoting two people familiar with the situation, Bloomberg said China is still in discussions with the United States on terms, but is among the eight. He argued that they will "hit at the core areas of Iran's economy" and "are necessary to spur changes we seek on the part of the regime", while adding that the "administration's efforts to change Iranian behavior are far broader, far deeper". This was a major impediment for India as it is heavily dependent on Iranian oil.
Thousands of Iranians rallied in Tehran on Sunday to mark the 39th anniversary of the US Embassy takeover, as Washington restored all sanctions lifted under the nuclear deal.
Pompeo defended the oil waivers and noted that since May, when the US began to press countries to stop buying Iranian oil, Iran's exports had dropped by more than 1 million barrels per day.
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Oil prices fell on Friday for a weekly loss of over 6 percent on worries about crude oversupply due to the US waivers.
Mnuchin said today that SWIFT "would be subject to USA sanctions if it provides financial messaging services to certain designated Iranian financial institutions" and that the U.S. He declined to name the targeted institutions.
Pompeo said that countries like India, if it gets the exemption, would be asked to bring down their oil imports from Iran to zero in six months' time.
However, ordinary Iranians fear an even more painful squeeze, from businesses struggling to buy raw materials to the sick and elderly unable to afford life-saving medicines.
The EU, France, Germany and Britain - all co-signatories, along with Russian Federation and China, to the nuclear deal with Iran - said in a joint statement on Friday they regretted Trump's decision to restore sanctions on Iran.
Diplomats told Reuters last week that the new European Union mechanism to facilitate payments for Iranian exports should be legally in place by November 4, when the next phase of USA sanctions hit, but will not be operational until early next year.
Iran's top leader said on Saturday U.S. President Donald Trump's policies face opposition across the world as Washington prepared to reimpose sanctions on Iran's vital oil-exporting and financial sectors, state television reported.
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