Pompeo Pushes Back Against GOPers Who Want Harsher Iran Sanctions
06 November, 2018, 01:40 | Author: Ted Wilson
Rallies replete with "Death to America" chants are staged on the embassy takeover anniversary every year, but US-Iranian rancour is especially strong this year following Trump's decision in May to withdraw the United States from a 2015 global nuclear deal and reimpose sanctions on Tehran.
When questioned about whether the European Union or other nations or jurisdictions would receive waivers (or SREs, "significant reduction exemptions"), he answered "T$3 he EU will not be receiving an SRE".
Crude exports contribute one-third of Iran's government revenues. "We're working with other countries to get alternative supplies for countries that are buying and I think that's critical over an extended period of time", he said.
Mr. Trump called the Obama-era nuclear deal with Iran the "worst ever" agreement stuck by the U.S. But the other parties to the deal - Britain, France, Germany, China and Russian Federation - stuck with it.
South Korea, one of Asia's biggest buyers of Iranian oil, last week asked the USA for "maximum flexibility" after some of its construction firms cancelled energy-related contracts in the Islamic Republic because of financing difficulties.
Pompeo said the USA moves have "had an enormous impact already".
US Secretary of State Mike Pompeo said the waivers, which expire in six months, were necessary to avoid disruption of world oil markets and to give the eight countries more time to eliminate their imports. Beware of the day we go after Israel, too. Exempted countries are top Iranian oil importers China, India, South Korea, Turkey, Italy, United Arab Emirates and Japan, as well as occasional oil customer Taiwan.
Speaking in Tehran on Sunday, Brigadier General Hossein Salami said that Iran's power has reached a level, that "we can threaten the vital interests" of a country such as the U.S.
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The sanctioned Iranian entities include 50 Iranian banks, 200 individuals, vessels tied to Iran's shipping and energy sector, and more than 65 Iranian aircraft. Iran denies the allegations.
Oil prices rallied above $85 per barrel in October on fears of a steep decline in Iranian exports.
Switzerland said it was holding talks with the United States and Iran about launching a humanitarian payment channel to help keep food and drugs flowing to Tehran.
'We are in the war situation, ' he said.
The new American sanctions particularly hurt Iran's vital oil industry, a crucial source of hard currency for its anaemic economy. Meanwhile, global economic slowdown concerns combined with mounting concerns over rising crude output from the world's top 3 oil producers, Russia, the U.S. and Saudi Arabia, also added to the weight on the commodity.
"We are in the war situation", President Hassan Rouhani said in a television address as the sanctions snapped into place.
Elsewhere in his remarks, FIEO head Gupta said Indian exports to Iran during the last fiscal year stood at $2.5 billion, which was less than 1 percent of India's total exports of around $302.8 billion. "It's the reason for President Trump's policy".
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Front-month Brent crude oil futures LCOc1 were trading down 46 cents, or 0.6%, at $77.16 a barrel at 0745 GMT. Oil capped its worst month in more than two years as concerns mount that the global economy will slow down.
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While far from the highs of the past five years, this is only slightly above the five-year average for inventory levels. Sanctions on the country would lead to retaliation by Saudi Arabia which may then lead to higher oil prices.
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