Iran

[dan_s]

Below is cut from an Executive Summary of the deal Obama made with Iran. Keep in mind that Iran only gets this if they can behave for six months and they significantly cut back their nuclear program. Note that there is no increase in the amount of oil they can sell. They just keep the current customers. In other words, they are not going to pump new crude oil supply onto the global market. - Dan

In return, the E3/EU+3 would undertake the following voluntary measures:
· Pause efforts to further reduce Iran's crude oil sales, enabling Iran's current customers to
purchase their current average amounts of crude oil. Enable the repatriation of an agreed
amount of revenue held abroad. For such oil sales, suspend the EU and U.S. sanctions on
associated insurance and transportation services.
· Suspend U.S. and EU sanctions on:
o Iran's petrochemical exports, as well as sanctions on associated services.5
o Gold and precious metals, as well as sanctions on associated services.
· Suspend U.S. sanctions on Iran's auto industry, as well as sanctions on associated services.
· License the supply and installation in Iran of spare parts for safety of flight for Iranian civil
aviation and associated services. License safety related inspections and repairs in Iran as well
as associated services.6
· No new nuclear-related UN Security Council sanctions.
· No new EU nuclear-related sanctions.
· The U.S. Administration, acting consistent with the respective roles of the President and the
Congress, will refrain from imposing new nuclear-related sanctions.
· Establish a financial channel to facilitate humanitarian trade for Iran's domestic needs using
Iranian oil revenues held abroad. Humanitarian trade would be defined as transactions
involving food and agricultural products, medicine, medical devices, and medical expenses
incurred abroad. This channel would involve specified foreign banks and non-designated
Iranian banks to be defined when establishing the channel.
o This channel could also enable:
transactions required to pay Iran's UN obligations; and,
direct tuition payments to universities and colleges for Iranian students
studying abroad, up to an agreed amount for the six month period.
· Increase the EU authorisation thresholds for transactions for non-sanctioned trade to an agreed
amount.

[dan_s]

The nuclear deal signed on Sunday will not allow any more Iranian oil into the market, or let western energy investors into the country, but it does freeze U.S. plans for deeper cuts to Iranian crude exports, Washington says.

Iran and six world powers reached a breakthrough deal early on Sunday to curb Tehran’s nuclear programme in exchange for limited sanctions relief.

But U.S. and EU sanctions on Iran’s energy sector, which have prevented western energy companies from dealing with Tehran, and slashed its oil exports from 2.5 million barrels per day (bpd) to around 1 million bpd, will remain in place.

“In the next six months, Iran’s crude oil sales cannot increase,” a fact sheet posted by the White House on the U.S. State Department’s website on Sunday said.

Full article:
http://business.financialpost.com/2013/ ... =9eab-4eea