US allows 8 nations to indulge in Oil Trade with Iran

The United States said on November 2 it will temporarily allow eight importers to keep buying Iranian oil when it re-imposes sanctions on November 5. The aim of these sanctions are to force Iran to curb its nuclear, missile and regional activities. 

US Secretary of State Mike Pompeo, who announced the decision, did not name the eight, which he referred to as “jurisdictions,” a term that might include importers such as Taiwan which the United States does not regard as a country. Though, Bloomberg quoted a US official saying that the eight countries exempted from the sanctions include, India, Japan and South Korea.

Sanctions would uphold until Iran meets demands. These demands include ending support for terrorism, ending military engagement in Syria and completely halting its nuclear and ballistic missile programme.

US gave this temporary relief in order to check the sudden rise in oil prices. The countries are expected to reduce and later shut the import of Iranian crude. 

Zero Crude

US government is planning to cripple the Iranian economy and for that, wants ‘zero crude’ export from Iran. Pompeo said Washington will issue temporary waivers to the eight Iran oil importers “only because they have demonstrated significant reductions in their crude oil and cooperation on many other fronts.” Among these 8 countries, two would stop imports and the other six would greatly reduce them. He later said the ultimate goal was to stop all Iranian crude exports.

We will ultimately move Iran to zero crude oil. That’ll take us some number of months to do that. We’ve been able to do that in a way that hasn’t had a huge impact on crude oil prices. That’s a good thing for American consumers.

Pompeo told Fox News. 

Iran Reaction

Iran is quite confident that it would not trouble much. Though the re-imposition of U.S. sanctions, target not only its oil and gas sector but also shipping, ship-building and banking industries.

America will not be able to carry out any measure against our great and brave nation … We have the knowledge and the capability to manage the country’s economic affairs. 

Iran’s Foreign Ministry spokesman Bahram Qasemi told state TV.

Though the relief for Iran is temporary and doesn’t affect much in the starting but the effects will show its true colors in the coming few months. The natives are quite worried and fear that further squeeze can really cripple the citizens. For importing nations, sanctions are headache as Iran exported crude quite cheaper since the last few months. For India, it would create a vacuum as it became the 2nd largest oil seller in April-June quarter. Trying to cripple Iranian economy is a method of USA to warn the countries who are going against the wishes of the White House. Since no one wants to go against the USA, the sanctions will remain effective till miracle happens. 

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