Published: Fri, November 09, 2018
Economy | By

USA tells world to steer clear of Iranian oil tankers

USA tells world to steer clear of Iranian oil tankers

The exception granted by Secretary of State Mike Pompeo to USA sanctions reimposed on Iran on Monday also will permit the construction of a railway line from Chabahar port to Afghanistan, and for shipments to the war-torn country of non-sanctionable goods, like food and medicines, the spokesman said.

In Moscow's first official reaction since the restoration of Washington's bans on Tehran, Russian Foreign Minister Sergei Lavrov said on Tuesday that the USA sanctions are "not legitimate".

"The U.S. administration will come to regret taking these ridiculous measures", Anadolu News Agency quoted Zarif, as saying.

Lavrov emphasized that Russian Federation and its European partners were looking for ways to maintain economic ties with Iran.

The administration of US President Donald Trump announced on Monday the re-imposition of the "toughest" sanctions ever against Iran.

The agreement with Iran to cap its capacity for nuclear arms development called the Joint Comprehensive Plan of Action (JCPOA) had been arrived at between Iran and six other countries, viz., the United States, Germany, France, UK, Russia and China.

The first round of penalties, which included cars, carpets, metals trading and access to the U.S. dollar, entered force in August. All of them maintain that they will continue to trade with Iran.

Front-month Brent crude oil futures were at $72.27 a barrel at 0800 GMT, up 21 cents, or 0.3 percent, from their last close. It is reported that the United States is demanding that India restrict its yearly purchase to 15 million tonnes a year which would amount to only 300,000 barrels a day. That would mark an abrupt end to six months of supply increases, reflecting the prospect that United States sanctions on Iran won't be deep enough to prevent another surge of American shale oil creating a new surplus.

Some market watchers believe the Organization of the Petroleum Exporting Countries and allies including Russian Federation may take steps to reduce supply.

USA crude output reached a new record high of 11.6 million bpd in the latest week and the country has now overtaken Russian Federation as the world's largest oil producer. We have so many countries that are on our side.

The top USA diplomat has granted an exception to certain U.S. sanctions that will allow the India-led development of a port in Iran as part of a new transportation corridor created to boost Afghanistan's economy, a State Department spokesman said on Tuesday. We are yet to know what are the serious concessions conceded by the Indian government. Dark days await the USA administration.

Unlike India, China has denounced the new USA sanctions. To defy the United States sanctions and preserve its strategic autonomy would require a break from this strategic alliance - something which the Modi regime can not even contemplate. However, this time the United States is alone, and the entire world, except for a few countries, have vowed to maintain business with Iran.

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