US must counter Iran nuclear move

Lloyd Doyle
May 16, 2018

President Donald Trump said May 8 Washington was withdrawing from Joint Comprehensive Plan of Action (JCPOA), the deal that suspended sanctions on Tehran in exchange for Iran curbing its nuclear ambitions.

The United States plans to reintroduce sanctions against Iran, which pumps about 4 percent of the world's oil, after abandoning a deal reached in late 2015 that limited Tehran's nuclear ambitions in exchange for the removal of US and European sanctions. Reuters news agency says Shell and some other European firms with big operations in the U.S. prefer to push for USA waivers on a case-by-case basis.

In their opening remarks, Lavrov said Russia, Iran and the other signatories of the deal, including China and three European countries, should together "defend their legitimate interest stipulated by this agreement".

"With stocks falling quickly during the course of the next 18 months, we would expect continued upside pressure on crude oil prices and see Brent averaging $75/bbl in 2019 compared to $70/bbl this year", BofA analysts noted, adding that a stronger dollar poses a risk to the high oil price forecast.

US President Donald Trump's decision to reimpose sanctions on Iran is forcing global shipping companies, traders, insurers and banks to look at pulling the plug on business with Tehran, it emerged yesterday. "A lot depends on what we can do within the next few weeks".

Part of the flaw with the Iran deal that President Trump rejected was it enticed Europe and the United States into economic relations with Iran that would work against holding the country accountable for violations of the agreement, Bolton said.

"It won't be easy, that's clear to all of us".

"However, if they resist the pressure from America, then I expect to see a small number of refineries being targeted by the USA treasury - imposing heavy fines on them to make an example for other refineries". But it's costing those refiners more to buy the crude oil they need to make those new gallons. Those comments were echoed by Foreign Secretary Boris Johnson who told parliament that regime change in Iran was not a policy Britain should pursue.

Mogherini agreed at the end of a long day of diplomatic meetings.

"The less competition from the United States and the European Union, the better", said Charlie Robertson, an analyst at Renaissance Capital.

But he added: "If the nuclear deal is to continue, the interests of the people of Iran must be assured". Trump denounced the accord, completed under his predecessor Barack Obama, as a "horrible, one-sided deal that should have never, ever been made" as it did not cover Iran's ballistic missile programme or its role in Middle East conflicts.

Protesters burned an American flag and railed against the United States and Israel after emerging from Friday prayers in Tehran.

Elsewhere, the market is expecting a seasonally strong summer for US production. German Foreign Minister Heiko Maas acknowledged, however, that protecting European companies from potential US penalties could be hard.

Iranian crude oil shipments to Japan and South Korea have fallen by half from their post-sanction peak in March 2017, hitting just over 300,000 bpd in April, according to ship tracking data from Thomson Reuters Eikon.

In his television appearance Sunday, Mr. Pompeo also expanded on his comments Friday that the USA would help North Korea achieve economic prosperity if it gave up its nuclear arsenal.

Other reports by Iphone Fresh

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