Published: Mon, November 05, 2018
Money | By Ethel Goodwin

"Watch What We Do": Pompeo Dodges India, China Questions On Iran Oil

Many may be asking: Didn't the Trump administration say it would bring Iran's oil exports to zero and that these would be the harshest sanctions ever?

The rally in the capital of Tehran comes as the United States restored all sanctions that had been lifted on Iran during the era of the Iran nuclear deal.

On Saturday, US Secretary of State Mike Pompeo said the decision to reimpose sanctions was "aimed at fundamentally altering the behavior of the Islamic Republic of Iran".

And she said Britain would stick to the nuclear deal thrashed out with Iran - which sees sanctions waived in return for a curb on the regime's development of nuclear weapons. "We will ultimately move Iran to zero crude oil". "The whole world understands these sanctions are real", he said during an interview of CBS's Face the Nation.

Iran exported the equivalent of 2.5 million barrels a day in April, before the announcement of sanctions turned buyers away.

"The United States remains open to reaching a new, more comprehensive deal with Iran that forever blocks its path to a nuclear weapon, addresses the entire range of its malign actions, and is worthy of the Iranian people", Trump said in the presidential statement.

The new American sanctions particularly hurt Iran's vital oil industry, a crucial source of hard currency for its anemic economy.

Iraq is not only next to Iran, it is economically and culturally so intertwined with Iran that it is not obvious if Iraq would have the capacity to break away completely from Iranian oil.

The European Union has established a mechanism to permit its multinational companies to maintain presences in Iran, but all signs are that the U.S. sanctions will be dissuasive. "But an alternative sourcing strategy needs to be worked out soon as the U.S. relaxation would be temporary and Washington would expect India to keep cutting imports from Iran to reach zero level", said an energy sector expert.

The UK, Germany and France - which are among the five countries still committed to the nuclear pact - have all objected to the sanctions, the BBC said.

"This is an economic war against Iran but". The renewed sanctions are designed "to paralyse the (Iran's) economy and keep it backwards. The administration already leveled one major round of sanctions in August; now, it is restoring the complete set of sanctions - and even adding hundreds of names to the list, according to Treasury Secretary Steven Mnuchin".

While now not threatening to resume higher enrichment, in recent months Iranian officials have made a point to threaten that it could resume at any time faster than before.

Interestingly, Pompeo also said the Obama administration allowed waivers to even more countries - a total of 20 - though the devil is in the details in terms of how big the waivers were, especially when the Obama era witnessed more cooperation from China and Russian Federation.

The U.S. president took to his unhinged Twitter account to post an image (which you can go find for yourself) warning people that "sanctions are coming", and the image made use of Game of Thrones-esque imagery and fonts.

"We are in the economic war situation", he said.

"America's goal in taking all these measures has been to regain the domination it had" prior to Iran's 1979 Islamic revolution that overthrew the pro-Western shah, Khamenei said.

The latest tranche aim to significantly cut Iran's oil exports - which have already fallen by around one million barrels a day since May - and cut it off from global finance.

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