Daily Management Review

Experts Fear Further Loss To International Trade Due To U.S. Sanctions On Iran Oil


07/02/2018




Experts Fear Further Loss To International Trade Due To U.S. Sanctions On Iran Oil
The United States is pushing various countries to reduce the quantity of oil imported from Iran to zero by November which has the potential to make international trade suffer which is a part of US’s poly to increase pressure on Tehran since it pulled out of the nuclear deal say experts.
 
"The pressures from the U.S. are against the logic of global economy rules," said Altay Atli, an Istanbul-based academic and writer specializing in international political economy and international relations.
 
The expert said that "the global trade system is shaking to its core" because of the reaction given by other global players to the situation created by the US with its unilaterally imposed new regulations and tariffs.
 
The expert reiterated the need for a new system that would be "free of American hegemony" and reflect the views and voice of the4 greater majority on the international trade map.
  
The pulling out of the Iran nuclear deal was announced by U.S. President Donald Trump in May. The pulling out meant imposition of new sanctions on Iran which includes possible sanction on the energy sector of the country, which had been relaxed against the promise from Iran of stopping its nuclear program.
 
Supply concerns over the U.S. move resulted in oil prices hitting a three-and-a-half-year high last week.
 
Large amounts of Iranian oil is imported by some of the closest allies of the United States which includes the countries India and South Korea. And according to statistics from the U.S. Energy Information Agency, large amounts of Iranian oil was also imported by Japan and Turkey.
 
There have been reports that indicate that the Indian government could be cowing down to US pressure as the reports quoted source claiming that the government there had given directions to oil companies and refineries to be prepared to face a drastic reduction of zero Iranian oil import situation. 
 
Washington’s demand would however not be adhered to by Turkey. The U.S. demand is non-binding for Turkey, said the Turkish Economy Minister Nihat Zeybekci last Wednesday. "We will follow the United Nations on its decision. Other than this, we will only follow our own national interests."
 
Removing Iran's crude oil from the market was an "impossible" thing to happen, an official at the country's oil ministry was quoted as saying by the Iranian media. 
 
There are many experts who believe that some of the major international players, such as China and Russia, could possible not give in to US’s demands.
 
"In China's case, the Iranian crude oil is essential," argued Altay Atli. He further expressed fears that the trade conflict between Washington and Beijing could get further deteriorated by the U.S. move.
 
While China and Russia would stand up to US demands resiliently, there are a number of smaller countries which are quite vulnerable to such US pressures, said Selcuk Colakoglu, director of the Ankara-based USAK Center for Asia-Pacific Studies.
 
"Room for maneuver is more limited for European nations, such as France and Germany which have deep trade and economic ties with the United States. If these allies want to export their goods there, they would have to, in a way, concede to some demands coming from Washington," Colakoglu added.
 
(Source:www.xinhaunet.com)






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