Trump News: Trump Reimposed Sanctions: Oil Price Hits $77 and Potential Consequences For Iran’s Oil Importers – China, Japan, India and South Korea

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POTUS  announced the US government’s withdrawal from the Iran deal and renewing oil sanctions, marking one of the biggest foreign-policy decisions of his term so far. 

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Source: Reuters

The end of Iran deal

Trump complained the Iran deal supplied the “murderous” Iranian regime with “billions” of dollars and said allowing the deal to stand would be “unacceptable” and catalyze a nuclear-arms race in the Middle East.

“Since the agreement, Iran’s bloody ambitions have grown only more brazen,” Trump said. “The Iran deal is defective at its core.”

“Therefore, I am announcing today that the United States will withdraw from the Iran nuclear deal,” Trump added.

As a result of this decision, Israel stated 20 rockets were launched in Syria by Iranian forces to strike Israel territories. Some of them were destroyed by Israel’s Iron Dome defense system.

Iran hasn’t commented on Israeli military strikes but noted that it’s the first time Iranian forces fired rockets directly at Israeli-claimed territories. In a response to the attack, Israel has struck almost all of Iran’s military infrastructure in Syria.

Consequences 

The new sanctions on oil will shake Iran’s economy. So, what these new sanctions really mean for Iran and importers?

  • US is to block new deals with Iran immediately and make other countries to reduce their number of oil imports in 180 days;
  • The impact will be felt the most by Asian countries,  China, Japan, India and South Korea, as they import more than 1.5M barrels per day;
  • Due to the upcoming summit between Kim Jong Un and POTUS Donald Trump, South Korea will likely comply with new US sanctions as well as Japan;
  • South Korea reduced the imports to 300,000 bpd in 2018, comparing to 360,000 bpd the last year, Japan started to reduce Iranian oil imports back in 2012;
  • China is the world’s largest importer of Iranian oil (648,000 bpd), and is unlikely to reduce this number in the near future. At the same time,  it would give China a chance to demand oil imports be priced in yuan, Reuters reports.
  • The same relates to India, which is second largest importer of Iranian oil.

“Crude oil prices rose to three-and-a-half-year highs following the news that the Trump administration revoked the nuclear deal with Iran. Brent crude oil prices, the global benchmark, and US West Texas Intermediate rallied above $77 and $71 per barrel, respectively, in the aftermath of the announcement,” stated Debbie Carson.


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Trump Reimposed Sanctions: Oil Price Hits $77 and Potential Consequences For Iran's Oil Importers - China, Japan, India and South Korea
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Trump Reimposed Sanctions: Oil Price Hits $77 and Potential Consequences For Iran's Oil Importers - China, Japan, India and South Korea
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POTUS  announced the US government’s withdrawal from the Iran deal and renewing oil sanctions, marking one of the biggest foreign-policy decisions of his term so far. 
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