US diplomats have to impose Iran oil curbs at home - Reuters
As reported by Reuters, a small department within the US government, the Bureau of Energy Resources, is now responsible for convincing US companies and foreign governments with cutting imports of Iranian crude oil following the restoration of sanctions against Iran.
Key quotes
"The Bureau of Energy Resources got the job done during the Iran sanctions that spanned 2012 to 2015, when President Barack Obama had the cooperation of European leaders in choking off Iran’s main revenue source to pressure it to curb its nuclear program.
This time around, the office faces steeper challenges: Europe’s leaders now oppose Trump’s aggressive stance on Iran and are considering ways to block the sanctions; the U.S. Senate has yet to confirm a leader for the bureau; and the State Department already has its hands full managing sanctions on Venezuela, trade disputes with China, and looming talks with North Korea.
Under Trump’s renewed sanctions, foreign firms will have 180 days to make reductions or face penalties that can include fines and restrictions on doing business in the United States.
The United States has banned Iranian oil imports to its own shores for decades, so Washington’s ability to squeeze the exports will rely on convincing foreign governments and companies to pressure the Islamic Republic back to the negotiating table for a “better deal” - as Trump has said he expects."
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
