Oil prices drop over 1 percent on Iran sanctions waivers

Oil prices drop over 1 percent on Iran sanctions waivers

Oil prices drop over 1 percent on Iran sanctions waivers

Having abandoned a 2015 Iran nuclear deal, U.S. President Donald Trump is trying to cripple Iran's oil-dependent economy and force Tehran to quash not only its nuclear ambitions and its ballistic missile program but also its support for militant proxies in Syria, Yemen, Lebanon, and other parts of the Middle East. The Russian diplomat said the sanctions go against worldwide law and practices, and that the US "policies of issuing an ultimatum and making unilateral moves are unacceptable these days".

However, the new list of sanctions, which also aims to cut Iran's vital oil industry off from worldwide sales, also included for the first time its state airline and its atomic energy commission, further highlighting the maximalist approach of President Donald Trump's administration.

"While the Iranian sanctions should still be viewed as a latent bullish consideration capable of limiting much additional price slippage, it would appear that the Iranian factor alone will not be capable of spurring higher prices without major assistance from a renewed strengthening in the equities, sustainable weakening in the US dollar or a significant cut back in OPEC production", Jim Ritterbusch, president of Ritterbusch & Associates, said in a note.

Anadolu quoted Erdogan as saying: "We do not find sanctions to be right because to us, they are sanctions aimed at upsetting the global balance".

The U.S. Treasury Department imposed penalties on more than 700 Iranian and Iranian-linked individuals, entities, aircraft and vessels in the new sanctions. Iran is its third-largest supplier after Iraq and Saudi Arabia and meets about 10% of total needs. America should learn that it cannot use the language of force against Iran ...

After the US' withdrawal from the deal, Trump signed fresh sanctions against Iran, which claims its nuclear programme is peaceful and for civilian objective.

Yesterday Pompeo said over 20 importing nations have zeroed out their imports of crude oil already, taking more than 1 million barrels of crude per day off the market. "It will be gradual", the USA president said.

Concerns about oil demand weighed on prices.

The new sanctions particularly hurt Iran's vital oil industry, which provides a crucial source of hard currency. However, fears of a supply shortage have been eased by the Trump administration's temporary waivers for China and India and stronger oil output from Saudi Arabia and the United States, CNN reported.

"These sanctions have already had an enormous impact".

Italy, Greece, South Korea, Taiwan and Turkey also figure in the list released by Pompeo.

South Korean Trade Minister Kim Hyun-chong says the waiver "opens breathing room" for South Korea's oil refining industry and companies that export to Iran. Watch the efforts that President Trump's policies have achieved.

House Democratic Whip Steny H Hoyer said, "Rather than achieving its stated goal of eliminating Iran's oil exports altogether, the administration has issued "exemptions" for major Iranian oil importers, allowing Iran to earn billions of dollars from oil sale".

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