US Reimposes Sanctions on Iran's Oil, Financial Sectors

Daniel Fowler
November 7, 2018

In general, countries are now supposed to avoid buying Iranian crude, unless they want to incur American wrath.

The sanctions end all US economic benefits America granted to Tehran for its 2015 nuclear deal with world powers and in particular target Iran's vital oil industry.

Sajjadpour said that a "political civil war" was under way in the U.S. between an internationalist school of thought and supporters of Trump asserting a new and "narrow-minded definition of American nationalism which negates the interests of the rest of the world".

Officials say the sanctions, other than putting Iran's economy under some strain, are also an opportunity to wean it off oil and diversify the country's sources of income.

President Donald Trump stands with Lee Greenwood as he sings "God Bless the USA" to start a rally with supporters in Chattanooga, Tennessee. China has publicly defied the U.S. call for curbs on oil imports from Iran.

Israel's prime minister is lauding the newly restored USA sanctions against Iran as "historic", saying they will "strangle" what he described as Iranian state-sponsored terrorism. "We have the toughest sanctions ever imposed but on oil, we want to go a little bit slower because I don't want to drive the oil prices in the world", he told reporters.

South Korean refiners have reduced their oil imports from Iran since the U.S. pulled out of the Joint Comprehensive Plan of Action, a nuclear deal with Iran, in May.

Swift now needs to decide whether or not to abide by the US demand - a decision that could involve breaking European Union rules - although it may well be that banks will now shun Iranian transactions whatever Swift decides.

Although commentators have suggested that the latest round of sanctions will hurt Iran, Sajjadpour suggested that they would have a limited impact.

The sanctions target 50 Iranian banks and their foreign and domestic subsidiaries, as well as more than 200 people and vessels in Iran's shipping and energy sectors, Treasury said in a statement.

One major challenge for the the size of the market that must be policed.

"When I look at the list, it's obviously very large economies that still in many ways depend on Iran oil imports and at this time don't have any strong alternatives", said Brian Katulis, a senior fellow at Center for American Progress, a liberal think tank.

Police search house as five men questioned
The video ends as the model is completely consumed by the fire, with one bystander saying: "Perfect". "It's a disgusting video". London Mayor Sadiq Khan attacked the video on Twitter, saying: "I utterly condemn this sickening video".

The United States announced a new raft of sanctions on Iran on Monday and threatened further action. Tankers are also painted and regularly change their flags.

Iranian officials, meanwhile, reported a cyberattack targeting the country's communication infrastructure, blaming the purported attack on Israel.

"Iran is a much different country than it was when I took office", said Trump, adding: "They wanted to take over the whole Middle East". US officials said they expect the exempted companies to eventually cut all Iranian deals, but the waivers offer another avenue for Tehran to fight the sanctions.

In a statement issued over the weekend, the Kremlin's foreign ministry "strongly condemned" the new wave of USA sanctions, arguing that the move deals "another powerful blow to the Nuclear Nonproliferation Treaty (NPT)".

Oil prices are trading thinly in early Monday action following Friday's downside pressure.

With the price of crude hovering around $80 per barrel, most energy market analysts agree that the total global market value is somewhere in the $3 trillion range. Although the percentage is small, it represents almost $150 billion worth of illegal sales.

He said that two of the eight jurisdictions will wind down Iranian oil imports to zero in "weeks" and the six others will import "at greatly reduced levels".

"Iranian exports and production had been declining steadily".

The latest United States sanctions against Tehran are an attempt by Washington to impose a vision of American nationalism upon the rest of the world, and are not just about Iran, a senior Iranian diplomat has said.

According to Jim Ritterbusch, president of Ritterbusch & Associates, trade wars are also playing their part in deflating energies demand: "The magnitude of recent selling is strongly suggesting that global oil demand is weaker than expected as a result of tariff issues, especially between the USA and China".

With Fordow continuing its operations, the issue is likely to "complicate, but not unravel future negotiations aimed at ending enrichment in Iran, which appears to be the Trump administration's goal", Albright said. Prior to that, he served as Fox Business Network's Washington correspondent.

Sambouk Shipping, according to the Treasury Department, was running eight vessels on behalf of the National Iranian Tanker execute ship-to-ship transfers of Iranian oil in the Persian Gulf meant to obscure the origin of the oil.

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