Tag: US Sanctions

The Ministerial Meeting of the Foreign Ministers of China, France, Germany, Russia and the UK will set up a legal entity to facilitate legitimate financial transactions with Iran and allow European companies to continue trade with Iran.  Namely, the participants considered ways forward to ensure the full and effective implementation of the JCPOA in all its aspects.

According to JPMorgan, oil prices could increase this winter, due to the US sanctions on Iran. Namely, JPMorgan expects the price of a barrel of oil to increase from $60 to $85 a barrel in the next six months, while a 'pike' to $90 is also on the table. These sanctions will become effective on November 4.

In its monthly oil market report, IEA said that global oil consumption will top 100 million barrels per day (bpd) over the next three months, but the upcoming US sanctions against Iran's oil exports, as well as the emerging market crises in Venezuela and Brazil, are expected to affect this demand. 

Iran will react with equal countermeasures if Washington tries to block its oil exports, Reuters reported in July. In response, US has recently said it is full prepared to keep regional commerce flowing through the Arabian Gulf  and committed to ensuring the safety of the region.

The US Department of the Treasury’s Office of Foreign Assets Control sanctioned two Russian shipping companies and six vessels that were involved in ship-to-ship transfers of refined petroleum products with North Korea-flagged vessels, something that is prohibited by the UN Security Council.

West of England P&I Club outlined the potential impacts for shipowners and insurers that will arise from the US’s decision to withdraw from the Joint Comprehensive Plan of Action agreement signed by China, France, Germany, Russia, the United Kingdom, the United States, the European Union (EU) and Iran.

Following the US decision to withdraw from the JCPOA with Iran, President Trump issued an Executive Order on 6 August 2018, which essentially re-imposes the secondary sanctions against Iran. These sanctions were contained in the EOs revoked when the JCPOA was implemented in January 2016. 

On 8 May, US President Trump withdrew the US from participation in the JCPOA and to re-impose US sanctions against Iran. Now the US Office of Foreign Assets Control revoked the General License H which allowed US owned or controlled foreign entities to make certain business with Iran pursuant to the JCPOA.

BIMCO informed that the US sanctions on Iran are affecting the tanker shipping industry. The immediate effects may be less tangible but they add more uncertainty to the whole shipping industry that has plenty of uncertainty to deal with. Freight rates for crude oil tankers and oil product tankers are making losses.

The decision by President Trump on 8th May, 2018 to cease the US participation in the JCPOA and to re-impose US nuclear-related sanctions which were lifted to implement the JCPOA, is likely to have significant consequences for maritime trade with Iran and the insurance of such trade, the UK P&I Club warns.