U.S. issues sweeping Iran oil sanctions waivers, unlocking billions in revenue for Tehran
The U.S. has issued a sweeping rollback of sanctions on Iranian oil,
allowing dollar-denominated trade for the first time in more than four
decades ...
The U.S. Treasury on Monday issued a wide-ranging 60-day exemption allowing Iran to produce and sell crude oil, petrochemical and petroleum products in U.S. dollars through Aug. 21. ...
The move on Monday marks the most sweeping rollback of American oil sanctions against Iran since the 1979 Islamic Revolution,
reversing years of pressure designed to cripple Iran’s economy, and is
expected to deliver billions in oil revenue for the Iranian regime. ...
U.S. President Donald Trump defended the lifting
of the sanctions, saying on Monday that any oil profits were meant for
Iran to purchase American agricultural goods, rather than rebuild its
military. ...
“With dollar clearing now authorized, expect China to accelerate
purchases aggressively,” said Maleki. Chinese buyers, in the past, have
settled transactions through opaque channels to avoid secondary U.S.
sanctions exposure. ...
He expects a rapid storage “top-off cycle” under which Chinese buyers
could rush to replenish stockpiles before the exemption expires in
August.
China currently purchases roughly 90% of Iran’s oil
exports, with teapots accounting for the bulk of China’s imports. The
country’s crude imports shrank by an unprecedented 4.8 million barrels per day (mbd)
between February and May — a steeper drop than the 4 mbd decline seen
during the depths of the pandemic in the second half of 2020, according
to JPMorgan. ...
Iran will likely use this 60-day window to repair war-damaged oil
facilities and lock in longer-term contracts with Chinese buyers, said
Michael Feller, chief strategist at Geopolitical Strategy. “This will be
a huge boost to Iran, both to its economy and its sense of victory.”
