Published: Mon, November 05, 2018
Economy | By

Oil prices fall as U.S. grants Iran sanction waivers to eight importers

Oil prices fall as U.S. grants Iran sanction waivers to eight importers

Iranian President Hassan Rouhani said the country will continue selling its oil and break the second batch of sanctions the U.S. administration reinstated since President Donald Trump unilaterally pulled out of the nuclear deal in May.

According to the hype from Capitol Hill, US restrictions against Iran coming into force at midnight are meant to economically punish the nation by preventing the sale of any Iranian oil outside of the nation's borders, although with the announcement of multiple waivers, the sanctions are instead likely to result in an increase of exports from the Middle Eastern country.

Washington has indicated that it will increase its pressure on Iran gradually rather than forcing an immediate crisis as President Trump's renewed oil and financial sanctions take effect tomorrow.

Israel's Defense Minister Avigdor Lieberman welcomed the newly restored US sanctions in a tweet on Monday, saying they will deal a "critical blow" to Iran's military presence around the Middle East.

The United States is reimposing punitive measures targeting the Iranian oil and financial sectors in what US Secretary of State Mike Pompeo called "the toughest sanctions ever placed" against Iran.

"Until then, our historic sanctions will remain in full force", he said, hours after his two Cabinet members, Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin, announced that the USA would reimpose a series of crippling sanctions on Iran beginning on Monday.

In this regard, India is also looking to adopt the strategy as it developed prior to 2015 when a West-imposed sanction on Tehran affected supplies.

Pompeo said the US had already managed to reduce Iranian oil exports by a million barrels a day.

While the commemoration annually sees American flags burned and cries of "Death to America" rise up, it also has a carnival-like atmosphere for the students and others taking part.

Washington says it wants a new deal with Iran, curtailing its regional interventions and missile programme - demands which have been flatly rejected by Tehran. "India said to the USA that they can't stop before March, they are facing a major currency crisis", explained Joel Hancock, an analyst at Natixis.

State media reported that "millions" of people rallied in towns and cities across Iran yesterday, swearing allegiance to the clerical establishment and its hardline top authority, Supreme Leader Ayatollah Ali Khamenei. "Market surveys of Iranian exports show a decline of more than 1 million barrels per day (bpd) as of October from May", Edward Bell, commodity analyst at Emirates NBD bank said.

Along with a continuous stream of worrying economic data out of China, and broader demand for energies seeing threats, United States crude oil sees a futures curve that has, up until now, forecast tightening expectations of tighter supply, and now forward-dated contracts are hinting that crude demand could be swept over by a tidal wave of supply in the months ahead.

Some 52 Americans were held hostage for 444 days in Iran.

Like this: