Published: Mon, November 05, 2018
Money | By Hannah Jacobs

New U.S. Sanctions Against Iran Go Into Effect

New U.S. Sanctions Against Iran Go Into Effect

On Monday, 5 November, the United States will not only be re-imposing the sanctions that were in place before the insane Iranian nuclear deal was entered into, but there'll be over several hundred designations, Pompeo said.

On Sunday, hard-liners vented their rage at a new American president, Donald Trump, who pulled the United States out of the nuclear deal struck by his predecessor that the United Nations said Tehran still honours.

Secretary of State Mike Pompeo on Sunday issued a thinly veiled warning to Russian Federation and China putting both countries on notice that it will suffer the consequences if they continue to purchase Iranian oil after US economic sanctions on such exports snap back this week.

Before travelling to a campaign rally for the USA mid-term elections, President Donald Trump said Iran was already struggling under his administration's policies. The rollback ends USA participation in the Obama-era accord, which now hangs in the balance as Iran no longer enjoys the billions of dollars in sanctions relief it was granted under the deal in exchange for curbs on its nuclear program.

For example, the United States does not want to have India and South Korea move geopolitically closer to China, Russia and other competitors and away from its influence.

Washington has also said that it wanted to stop what it calls Teheran's "malign" activities including cyber attacks, ballistic missile tests, and support for terror groups and militias in the Middle East.

Rouhani also vowed that Iran would break the sanctions. But Iranian officials in recent months have made a point to say that could resume at any time faster than before.

Reuters in June reported that SBI would stop handling payments from Iran oil purchases from November, when stringent usa sanctions against Tehran will kick in.

Oil is Iran's main source of income.

"They need a little bit more time to get to zero", Pompeo explained.

In contrast, with the US-EU trade wars toned down, most large EU businesses are cooperating with US sanctions against Iran. "They're very serious sanctions".

Pompeo maintained that despite the waivers, "these sanctions have already had an enormous impact".

But Mr Rouhani struck a defiant tone, saying that Iran would "continue selling oil". "We think China and Iran carrying out normal cooperation under the framework of global law is lawful and reasonable, and (this right) should be respected and protected", he added.

"The Iranian people are feeling the economic pressure at their dinner tables and we complain about this, but it will not make Iranian people give up Islam, their values and the [Islamic] Revolution because of rising prices", he said.

Speaking about whether the European Union can help Iran in solving its problems, the expert stressed that the sanctions increase the risks associated with investing in Iran, which leads to a decrease in the credibility of this country at the worldwide level, and the demand for Iran's goods and services decreases.

He said he could not rule out that the US administration would extend the waivers beyond six months. "SWIFT is no different than any other entity, and we have advised SWIFT the Treasury will aggressively use its authorities as necessary to continue intense economic pressure on the Iranian regime", said Steven Mnuchin, US Secretary of the Treasury.

Iran's military has said that it would hold air defence drills on Monday and Tuesday to prove the country's capabilities.

China, India, South Korea, Japan and Turkey - all top importers of Iranian oil - are among eight countries expected to be given temporary exemptions from the sanctions to ensure crude oil prices are not destabilised.

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