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Iran in a scary economic situation after US imposes new sanctions

Trump is threatening to impose big new sanctions against Iran on Monday, ramping up the strain on the Republic at a time when its financial system is straining underneath the burden of economic restrictions.

Six oil carriers and a U.S. spy drone have been attacked since May both in or close to the Strait of Hormuz — the world’s busiest transit area for sea oil shipments that separates Iran from its neighboring Gulf states. The flurry of attacks has increased tensions between Washington and Tehran.
On Saturday, Trump stated through Twitter that he would impose further sanctions against Iran in a bid to stop the nation acquiring nuclear weaponry. The U.S. already has put sanctions on Iran’s oil trade and different sectors.

Trump added that financial stress could be maintained except Iran’s management modified course.

Tensions betweenWashington and Tehran have increased since May 2018, when Trump withdrew from the 2015 nuclear deal and reinstated sweeping sanctions on the nation. The U.S. has additionally bolstered its military presence within the Middle East and blacklisted Iran’s Revolutionary Guard as a terrorist group.

Birch has estimated that Iran had been exporting between 10 million to 15 million barrels per week in seaborne crude oil exports within the first quarter of the year. Now, this agency sees “nominal volumes” of 4 million to 5 million barrels per week; however half of that was just supplied in domestic ports, Birch mentioned.

Iran’s oil exports, the federal government’s primary source of revenue, has been struck by U.S. sanctions.

Washington has applied monetary restrictions to almost 1,000 Iranian entities, together with banks, individuals and vessels tied to the nation’s transport and energy sector. In May, the White House prohibited the acquisition of Iranian iron, steel, aluminum, and copper.

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Margaret Anderson

Margaret is the chief editor of the business column and has been working in this post for 3 years. She is an ideal match for this profile because of her immense knowledge in the field of business. She knows every minute details of the stock markets and the world of business. Her articles are very beneficial for the pros and even for the beginners.

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