US tightens oil sanctions against IranCurrent affairs
Iran faces tighter sanctions on its oil industry as President Barack Obama continues to mount pressure against Iran’s ambition to pursue a nuclear programme. The move, however, will risk the surge in oil prices along with the anger of other nations.
In a bold move revealed by President Obama, the US will exclude Iran’s trading partners – including the likes of China, Turkey and India – from its financial system if they fail to reduce the amount of the oil they import from Iran.
The sanctions were passed by Congress in December, but Obama had until Friday to decide on the impact the reduction in Iranian oil would have on the US and the world economy.
In a statement from the White House, Obama said he decided that there were enough non-Iranian supplies to allow the reduction of oil imports from Iran.
“There is a sufficient supply of petroleum and petroleum products from other countries other than Iran to permit a significant reduction in volume purchased from Iran by or through foreign financial institutions,” the statement read.
He added many of Iran’s oil importers have already reduced their quota or are looking for alternative suppliers.
The sanctions are due to come into effect on 28th June while the EU is due to impose its oil embargo on 1st July.
China and Russia have criticised EU and US attempts to restrict Iran’s oil trades, and the prohibition will be even greater come June when EU and US implement the sanctions to drastically cut Iran’s overseas exports.
China and Russia, along with other nations, now have the unwelcome decision to choose between the trade with the US or the oil from Iran.
The US and EU argue Iran’s uranium enrichment programme is capable of building nuclear weapons and they are actively seeking to do so, claims which Iran obstinately denies.