As US sanctions resume, Iran president warns of ‘war situation’

Posted November 05, 2018

The United States said on Friday it would temporarily allow eight importers to keep buying Iranian oil after it reimposed sanctions on the country's crude flows from Monday, aiming to force Iran to curb its nuclear missile and regional activities.

Iran reached an agreement with the six world powers including the USA and the European Union in 2015, which curtailed its nuclear programme in return for lifting of the worldwide economic sanctions.

"We will proudly break the sanctions", he said at a meeting of economic officials.

Oil prices dipped on Monday as the start to USA sanctions against Iran's fuel exports was softened by waivers that will allow some countries to still import Iranian crude, at least temporarily. "I don't think that in the history of America, someone has entered the White House who is so against law and global conventions", he added.

When asked whether the administration's efforts would push Iran closer to a nuclear bomb, he replied: "We are confident that will not happen". "We will ultimately move Iran to zero crude oil".

On Monday, 5 November, the USA will not only be re-imposing the sanctions that were in place before the insane Iranian nuclear deal was entered into, but there'll be over several hundred designations, Pompeo said.

Trump announced the U.S.'s withdrawal from what he described as "the terrible, one-sided" nuclear deal.

In all, eight countries will receive temporary waivers to allow them to continue importing Iranian oil after the penalties take effect.

The ghost of United States sanctions on Iran seems to have calmed down at least for major energy importing countries like India. "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".

It is believed that the new sanctions will compel Tehran to renegotiate the Joint Comprehensive Plan of Action (JCPOA).

All of the other signatories, China, the European Union, France, Germany, Iran, Russia and the United Kingdom, have remained in the deal despite U.S. action.

Oil markets have been anticipating the sanctions for months and the world's biggest producers have been increasing output.

Iranians have taken to the streets chanting "Death to America" to protest the reimposition of U.S. sanctions on oil exports, timed to coincide with the anniversary of the United States embassy takeover during the 1979 Islamic Revolution.

But Mr Rouhani struck a defiant tone, saying that Iran would "continue selling oil". But the sword has two edges: Iran is also the OPEC cartel's third-largest producer. "The challenge between the U.S. and Iran has lasted for 40 years so far and the USA has made various efforts against us: military, economic and media warfare", he said.

The holes in Trump's strategy were outlined in an article in the New York Times earlier this week, pointing out that China and India will continue to buy Iranian oil in addition to Turkey and Russian Federation.