Sanctions against Iran oil - Nov 5
Posted: Mon Nov 05, 2018 9:07 am
Reuters:
Washington imposed sanctions against Iran on Monday, restoring measures lifted under a 2015 nuclear deal negotiated by the administration of former U.S. president Barack Obama, and adding 300 new designations including Iran's oil, shipping, insurance and banking sectors.
In response, Iranian President Hassan Rouhani said in a speech broadcast on state TV that Iran would break the sanctions and continue to sell oil.
And Washington said on Friday it will temporarily allow eight importers to keep buying Iranian oil. The waivers will last up to 180 days and have been granted on the basis that importers have already slashed purchases and will further reduce them in the future.
Washington has so far not identified the eight. China, India, South Korea, Turkey, Italy, the United Arab Emirates and Japan have been the top importers of Iran's oil, while Taiwan also occasionally buys Iranian crude.
South Korea said on Monday it had been granted a waiver, at least temporarily, to import condensate, a super-light form of crude oil, from Iran. It was also allowed to continue financial transactions with the Middle East country, it said.
FALLING EXPORTS
Iran said it would ignore the sanctions.
"It will be difficult for Iran to maximize exports when virtually all trade in oil is cleared in U.S. dollars, putting international oil companies, many national oil companies, traders and banks off limits," said Homayoun Falakshahi from the consultancy Wood Mackenzie.
Crude exports contribute one-third of Iran's government revenues. Exports peaked at 2.8 million barrels per day in April, including 300,000 barrels per day of condensate, but have fallen to 1.8 million bpd since then, according to WoodMac, which expects volumes to drop further to 1 million bpd.
Washington imposed sanctions against Iran on Monday, restoring measures lifted under a 2015 nuclear deal negotiated by the administration of former U.S. president Barack Obama, and adding 300 new designations including Iran's oil, shipping, insurance and banking sectors.
In response, Iranian President Hassan Rouhani said in a speech broadcast on state TV that Iran would break the sanctions and continue to sell oil.
And Washington said on Friday it will temporarily allow eight importers to keep buying Iranian oil. The waivers will last up to 180 days and have been granted on the basis that importers have already slashed purchases and will further reduce them in the future.
Washington has so far not identified the eight. China, India, South Korea, Turkey, Italy, the United Arab Emirates and Japan have been the top importers of Iran's oil, while Taiwan also occasionally buys Iranian crude.
South Korea said on Monday it had been granted a waiver, at least temporarily, to import condensate, a super-light form of crude oil, from Iran. It was also allowed to continue financial transactions with the Middle East country, it said.
FALLING EXPORTS
Iran said it would ignore the sanctions.
"It will be difficult for Iran to maximize exports when virtually all trade in oil is cleared in U.S. dollars, putting international oil companies, many national oil companies, traders and banks off limits," said Homayoun Falakshahi from the consultancy Wood Mackenzie.
Crude exports contribute one-third of Iran's government revenues. Exports peaked at 2.8 million barrels per day in April, including 300,000 barrels per day of condensate, but have fallen to 1.8 million bpd since then, according to WoodMac, which expects volumes to drop further to 1 million bpd.