Economy

Mullin: The End of a Bad Deal with Iran

Mullin: The End of a Bad Deal with Iran

If the European Union were to continue status quo and not re-impose sanctions, Iranian supplies to India will continue unhindered, he said.

External affairs ministry spokesperson Raveesh Kumar said India was closely monitoring the situation arising out of Trump's announcement to pull the United States out of the Iran deal.

The leaders of France, Germany and the United Kingdom have expressed regret and concern over Trump's decision to withdraw the USA from the JCPOA. Total of France, which has a big U.S. presence, signed a $5bn dollar deal with Iran and will be hoping that French government intentions to challenge the United States move at the World Trade Organization may salvage some of that. "Now that the USA has violated that and pulled out of it, it's hard to see how we're going to get those Americans out". Now that there are more issues that point towards a possible disruption of supply in crude oil, the commodity price added about one percent in NY futures. Already, Brent crude has crossed $75 per barrel and some feel it could climb as high as $100 per barrel over the next few months while others view current levels to be unsustainable.

With no operations in the United States, Li was not concerned about being targeted by the U.S. Treasury.

Since the Iranian revolution in 1979, the U.S. had been increasingly imposing economic sanctions on Iran to restrain its nuclear technology development activities.

Mr Trump said this week that the 2015 nuclear deal which allowed for the lifting of sanctions was not tough enough on Iran. Perhaps, the company feels that not complaining and complying with the government will stand it in good stead when the U.S. government needs more planes for its military.

Iran has said Washington will regret it "like never before" if Trump walks away from the deal.

Facing the prospects of new economic sanctions, Iran moves to begin the first commercial exports of its own crude oil grade, West Karoun, Reuters reports, citing sources familiar with the matter.

At the same time the OPEC oil cartel and other oil producing countries - notably Russian Federation - have agreed to restrict production to boost prices. The price is about 50 cents higher than on the same date in 2017. With shifting agendas and political equations, there has been increasing division within OPEC lately.

UK Prime Minister Theresa May and US President Donald Trump have discussed the impact of America pulling out of the Iran nuclear deal, Downing Street have said. This coupled with low production from Mexico and Venezuela could lead to supply side pressure in the immediate term and we see some upside risk in the immediate term.

To be sure, greater Saudi assertiveness does not mean that the kingdom does not have to tread carefully in potentially seeking to penalize China and others for their potential refusal to go along with Trump's confronting of Iran.

Saudi Arabia "will work with major producers and consumers within and outside OPEC to limit the impact of any supply shortages", a Saudi energy ministry official said on Wednesday, according to state news agency SPA. Israel said Iran fired missiles at its soldiers in the Golan Heights and retaliated by striking Iranian targets in Syria after weeks of building tensions. "And the Iranians must be held accountable for this", Jubeir told CNN.

Of this, crude exports were around 2.45 million b/d, a rise of some 400,000 b/d from March, though condensate exports remained largely steady month-on-month. If sanctions are imposed, Indian companies might have to look for alternate supplies to compensate supplies.

Brent crude oil futures at one point touched their highest since November 2014 at 76.75 dollars per barrel.