Published: Mon, November 05, 2018
Finance | By Jaime Brady

"Black Monday": Iranian Analysts Explain Why US Sanctions Unlikely to Succeed

The European Union also said it is opposed to the United States decision, under which the second batch of sanctions targeting Iran's oil and financial sectors were put into effect.

The rally in the capital of Tehran comes as the United States restored all sanctions that had been lifted on Iran during the era of the Iran nuclear deal.

The Trump administration has said it is confident that "the toughest ever" sanctions against Iran which came into force on Monday will have the intended effect of altering the Iranian regime's behaviour, even as it dodged a question on whether the USA has firm commitments from India and China to stop all oil purchases from Tehran within six months.

High Representative of the European Union for Foreign Affairs and Security Policy Federica Mogherini, along with German Minister of Foreign Affairs Heiko Maas, Swedish Ministry for Foreign Affairs Margot Wallström and Danish Foreign Affairs Ministe Anders Samuelsen held a conference call with Iranian Foreign Minister Mohammad Javad Zarif Saturday, to discuss the blowback to the European Union as a result of the reimposition of USA sanctions.

The sanctions end all the economic benefits America granted Tehran for its 2015 nuclear deal with world powers. "They wanted to take over the whole Middle East".

The Europeans are working to set up a special payment system that would bypass the United States sanctions and discard the dollar in dealings with Iran.

Rouhani then maintained that the country's exports have increased in the past seven months compared to the same period previous year, saying the growth occurred despite the US' attempt to hamper Iran's economic activities.

"The effect of the initial sanctions is already being felt - the [local currency] is at a low, Iran's economy is at a low and we're already seeing results on the ground", he said in video message posted Saturday. I should think that lessening the resources of the regime to fund evil beyond Iran's borders is good in itself, but this is a point that escapes Gordon.

Global benchmark Brent crude had fallen about 15 per cent from over $85 a barrel in October on speculation that some nations would get waivers, as well as signs that other Opec members would pump more to offset any supply gap.

The European Union has established a mechanism to permit its multinational companies to maintain presences in Iran, but all signs are that the USA sanctions will be dissuasive.

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He also said airstrikes by the Arab coalition, backed by the US , "must cease in all populated areas in Yemen". Washington, a close Saudi ally, backs coalition forces by refuelling their jets and selling them weapons.

"Secretary Pompeo has been very clear that we have an ear open to what is possible".

Iranian oil exports have fallen by about a million barrels a day in that time, though India and China have continued to purchase it.

"The Islamic Republic of Iran can and will sell its oil", said Rouhani, adding "even if these eight countries had not received exemptions, we would still sell our oil".

But Trump's announcement in May helped fuel a run on Iran's currency that has seen the rial lose more than two thirds of its value, driving up prices and forcing the government to resort to food handouts for the country's poor.

Senior Iranian officials have dismissed concerns about the impact to its economy.

"America has launched an economic and psychological war as a last resort".

Saudi Arabia is the only country with the capacity to make up for lost Iranian oil production.

Pompeo and Treasury Secretary Steven Mnuchin were expected to provide more details on the sanctions at a briefing Monday.

The countries will deposit Iran's revenue in an escrow account, US officials have said.

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