US breaks EU resistance over Iran sanctions, and incubates next oil crisis

US breaks EU resistance over Iran sanctions, and incubates next oil crisis

US breaks EU resistance over Iran sanctions, and incubates next oil crisis

The United States imposed strict sanctions on Iran on Monday and threatened more action to stop Tehran pursuing "outlaw" policies, steps the Islamic Republic condemned as economic warfare and vowed to defy.

Taking effect Monday, the measures are the most concrete result yet of US President Donald Trump's controversial decision in May to abandon the multi-nation nuclear deal with Tehran.

China says it regrets the US decision to re-impose sanctions on Iran but will continue to uphold the nuclear deal Beijing agreed to as a permanent member of the United Nations Security Council.

The countries allowed to keep buying oil from Iran temporarily under the sanctions include China's two biggest oil customers, China and India, Pompeo announced.

Trump administration officials have said eight entities are being given short-term waivers to allow them time to completely wind down their existing Iranian oil imports.

Having abandoned the 2015 Iran nuclear deal, US President Donald Trump is trying to cripple Iran's oil-dependent economy and force Tehran to quash not only its nuclear ambitions and its ballistic missile program but its support for militant proxies in Syria, Yemen, Lebanon and other parts of the Middle East. SUBSCRIBE NOW and hit the bell to be the first in the know.

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

The other remaining signatories to the nuclear deal - Russia, China, France, Germany, the United Kingdom, and the European Union - have condemned the U.S. decision, stressing that the International Atomic Energy Agency (IAEA) confirms Iran's full compliance with the accord. According to the US Treasury, the sanctions brings the total number of Iran-related targets to 900, the highest ever.

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

USA officials did not immediately make an announcement as the sanctions took force in the early morning hours of November 5, part of Washington's effort to ramp up pressure on Tehran to "change its behavior" and end what the United States says is its "malign" activities in the region.

"We hope a new agreement with Iran is possible, but until Iran makes changes in the 12 ways I listed in May, we will be relentless in exerting pressure on the regime", Pompeo said.

"We are in the economic war situation".

Ambassador Khoshroo said: "The irresponsible conduct of the United States necessitates a collective response by the worldwide community in order to uphold the rule of law, to prevent undermining diplomacy and to protect multilateralism".

Iranian President Hassan Rohani responded early on November 5 by saying in a speech on state TV that Iran is facing a "war situation". Meanwhile, global economic slowdown concerns combined with mounting concerns over rising crude output from the world's top 3 oil producers, Russia, the United States and Saudi Arabia, also added to the weight on the commodity.

The US expects to have reduced Iranian oil exports by more than 1 million barrels even before Monday's tranche of economic penalties. The other signatories - Britain, France, Germany, Russia and China - remain committed to the accord.

Rouhani said four countries had approached him during his visit to NY for the UN General Assembly in September, offering to mediate with the United States but he turned them down.

Related news