Published: Thu, July 12, 2018

Pompeo to urge mounting pressure on Iran

Pompeo to urge mounting pressure on Iran

The United States in May said it would reimpose the sanctions after withdrawing from a 2015 agreement with Iran, Russia, China, France, Germany, and Britain, where Tehran agreed to curb its nuclear activities in return for the lifting of earlier sanctions.

Pompeo said that included a "series of sanctions aimed not at the Iranian people, but rather aimed at the single mission of convincing the Iranian regime that its malign behaviour is unacceptable".

In the joint statement, they reconfirmed their commitment to the deal and its "economic dividends" for Iran, which has suffered worsening financial turbulence since Trump abandoned the accord, and vowed to work for "the protection of companies from the extraterritorial effects of United States sanctions". While in Europe last week, Rouhani said any disruption to Iran's oil exports would result in the whole region's exports being disrupted.

For the first six months of 2018, India's Iranian oil imports increased by 8.4 percent to 585,000 bpd.

Iran "should know that America is committed to keeping sea lines open, keeping the transit of oil available for the entire world", Pompeo said.

This acknowledgment coincides with the Iranian parliament vice president Ali Motahari threat to close the Strait of Hormuz.

Listing the "privileges", he said that in the previous round of sanctions "Iran did its best to ensure security of oil supply to India and offered flexibility through selling oil with longer term credits and discounted prices as well as oil payments in rupee, and insurance coverage for oil shipments which facilitated our bilateral trade and pushed up significantly Indian export to Iran". While allies like Saudi Arabia, the UAE and Kuwait say they are willing to increase their own production as necessary, additional output may not be enough to satiate demand.


Isolating Iran could sideline millions of barrels of oil per day from a market with little spare capacity left.

USA benchmark crude traded near $75 a barrel on Tuesday, while Brent crude traded near $80.

State Department officials were joined by Treasury Department officials and spent three days in Saudi Arabia to discuss ways to economically isolate Iran, and at the same time, keep oil markets well-supplied, the official noted.

Washington has threatened the countries potentially maintaining business with Iran despite the US's bans with "secondary sanctions".

After Iraq and Saudi Arabia, Iran is India's third-largest oil supplier.

Jahangiri said Washington was trying to stop Iran's petrochemical, steel and copper exports, and to disrupt its ports and shipping services.

Before heading to Brussles, Pompeo, himself, was in Abu Dhabi, where he likewise tried to rally more support against Tehran.

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