As sanctions start to bite, Iran crude exports set to wilt

As sanctions start to bite, Iran crude exports set to wilt

Trump withdrew from the Iran nuclear deal in May, and Washington now plans to reimpose sanctions on Tehran next month. It was adopted by United Nations Security Council Resolution 2231.

The 1955 treaty states that there will be peace and friendship between the USA and Iran and encourages trade and investments.

Iran is India's third-largest oil supplier after Iraq and Saudi Arabia.

Iran hopes that by activating bank accounts in Europe in euros, pounds and other currencies for its Central Bank in Europe, "it could more easily repatriate global oil export revenues-or at least use that revenue to purchase key products in Europe", Tasnim reported.

Uncertainly surrounding the re-imposition of USA sanctions has already rocked Iran, contributing to the Iranian rial falling sharply against the US dollar and sparking waves of protests across the country.

"The main aim of the U.S. is to choke the flow of hard cash to Iran since the United States blames Iran for using money it has made through oil sales to prop up the opposition in Yemen and Syria, creating problems for USA allies like Israel and Saudi Arabia", Sinha said.

Iranian President Hassan Rouhani has accused the US of stoking an "economic war" and suggested Iran could immediately ramp up its production of uranium in response to USA pressure. Analysts and former U.S. officials told DW at the time that the Trump administration revealed that it had little desire for a diplomatic solution, but looked rather to be pursuing a policy of economic pressure created to topple the Iranian regime.

The EU also updating a so-called "blocking statute" that would protect EU firms that do business with Iran from USA extra-territorial sanctions.

Relations between Saudi Arabia and Iran have been tense with Saudi Arabia blaming Iran for financing Houthi rebels in Yemen that have attacked Saudi assets.

External Affairs Minister Sushma Swaraj will also travel to Tehran for the next Joint Commission meeting in November, an official statement said, which is the month US sanctions on energy trade would go into effect.

US Treasury Secretary testified in Congress that the US will enforce sanctions on all of Iran's oil buyers, including China, Russia and Europe.

Multinational companies returned to Iran after the signing of the landmark JCPOA agreement.

The specter of new US sanctions, particularly those meant to block oil exports that are the lifeline of Iran's economy, has caused a rapid fall in the Iranian currency and triggered street protests over fears economic hardships will soon worsen.

The 2015 agreement "ordered tough USA sanctions on Tehran". Imports from Iran were also worth €10.1bn (£8.8bn). He has also called the European Union a "foe" on trade issues.

"Make no mistake about it", Pompeo said, "we're determined to impose these sanctions globally and broadly".

"What they've asked us to do is review how we get there and the timeline for that", he said.