The United States on 2 November affirmed its threats of further sanctions on Iran and on companies and countries that did business with Iran. It granted waivers to eight countries, to include India, South Korea, Japan and China. The waivers will exclude members of the European Union. In July 2015 , the Joint Comprehensive Plan..
The United States on 2 November affirmed its threats of further sanctions on Iran and on companies and countries that did business with Iran. It granted waivers to eight countries, to include India, South Korea, Japan and China. The waivers will exclude members of the European Union.
Background
In July 2015, the Joint Comprehensive Plan of Action was signed by the P5+1 and the European Union in an attempt to curb Iran’s nuclear programme (for more read this link). In May 2018, US President Donald Trump withdrew from the JCPOA. Soon after, the United States enforced trade sanctions on Iran, and threatened to impose sanctions on companies that did business with Iran.
The sanctions were promised in May, when President Trump announced that the United States was withdrawing from a 2015 deal with world powers to limit Iran’s nuclear .program. Many countries still rely heavily on Iranian oil imports, such as India, which has reduced oil imports from Iran by over 30% in the past few months.
Analysis
The Trump administration announced on 2 November that it was exempting eight countries from bruising sanctions that the United States was reimposing against Iran, undercutting its pledge to economically punish Tehran’s regional aggressions while widening a profound rift with European allies.Mike Pompeo, the secretary of state, said the waivers were granted to the eight countries “only because they have demonstrated significant reductions in their crude oil and cooperation on many other fronts.” He said two of the eight were expected to end their imports of Iranian oil “within weeks,” and all must reapply for extended exemptions at the end of six months.
They sanctions were affirmed on the eve of a long-announced Nov. 5 deadline for nations to cease importing Iranian goods or face financial penalties, and days before crucial midterm elections in which the Trump administration is seeking to galvanize Republicans who support his hard-nosed foreign policy.
Pompeo did not identify the eight countries that were being granted six-month waivers, but a senior official confirmed that they include India, South Korea, Japan and China, all among the world’s largest importers of Iranian oil.
Mr. Pompeo said the European Union, which recently announced the creation of an economic channel to continue financial dealings with Iran, was not among those receiving waivers.
Most big European companies have left Iran in recent months ahead of the looming penalties, but European diplomats vowed on Friday to continue efforts to protect legitimate trade with Tehran.
Assessment
Our assessment is that the present move is likely to rupture Trans – Atlantic ties.
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