Economy

Trump's Iran zero oil plan hits snag

Trump's Iran zero oil plan hits snag”

The US sanctions on Iran are part of US President Donald Trump's effort to force Tehran to curb its nuclear and missile programmes.

Going after Iran´s oil money will hit Tehran where it hurts, but it also means hitting a major pillar of the global oil market - Iran is the OPEC cartel´s third-largest producer - with major consequences for world supply.

He said those countries, which other officials said would include USA allies such as Turkey, Italy, India, Japan and South Korea, had made efforts to eliminate their imports but could not complete the task by Monday.

The White House said it was "the toughest sanctions regime ever imposed on Iran" and targeted Iran's energy, shipping and banking sectors.

As a result of the latest sanctions, he said the United States expects to have reduced Iranian crude oil exports by more than 1 million barrels even before these sanctions go into effect.

Mnuchin says the USA has informed SWIFT that it would be subject to US sanctions if it provides financial transfer services to "certain designated Iranian financial institutions".

"SWIFT now must make a choice", he said: refuse to deal with Iran banks on the USA blacklist, or face sanctions itself.

The seizure of the United States embassy by radical students was a key stage in the Islamic revolution of 1979, leading to a 444-day hostage crisis that permanently damaged relations between Washington and Tehran.

On Saturday, the eve of the anniversary of the 1979 takeover of the U.S. Embassy in Tehran, Iran's Supreme Leader said the Islamic Republic is the "victorious party" after almost 40 years of confrontation by the United States.

"Mogherini and the European ministers ... highlighted the importance of the finance ministers' commitment to Europe's financial mechanism to save the Iran nuclear deal and said the mechanism will be operational in the coming days", IRNA said.

Iran's top leader said on Saturday U.S. President Donald Trump's policies face opposition across the world as Washington prepared to reimpose sanctions on Iran's vital oil-exporting and financial sectors, state television reported.

Most of them. Pompeo said Friday the administration will grant temporary waivers to eight countries that have "demonstrated significant reductions in crude oil and cooperation on many other fronts and have made important moves toward getting to zero crude oil importation".

But the United States has rebuffed them and gone ahead with its sanctions plan, arguing that nations, banks and businesses worldwide will decide they'd rather do business with the USA than Iran. Companies like Total SA and Royal Dutch Shell Plc have halted purchases because the risk of being frozen out of the USA financial system is simply too great.

"Mr Trump both tries to decrease Iran's oil exports significantly and also wants prices not to go up".

Iranian officials are betting on the unstable market conditions to beat U.S. sanctions.

Pompeo, meanwhile, expressed confidence that the United States is placing maximum pressure on Iran's government largely by targeting the energy industry.



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