Thursday, October 13

Ripples are Occur as the America’s Sanction on Iran Makes it Hard to Trade oil

Unknown: With the increasing pressure maintained by U.S. on Iran has led to affecting the oil buyer’s from all over the World. With the new regulations coming into act has considerably throttled Iran’s businesses with other countries. India has denied bowing down to any kind of unilateral restrictions whereas; Japan and Korea have decided to go with the flow of events.

According to the estimates provided by FGE, Iran’s export business is going down the road and will reach approx. one million barrel daily by the year 2019. With the 50 % rise in the prices and a plunge of 1.7 million from 2.5 million barrel a day, has got everyone thinking about the situation at hand. Now the market is looking up to other producers such as Russia to fill up the gap. America trying to exclude Iran from the main stream has created ripples with everlasting effects.

Many countries are being threatened by this decision of America. Even, Indian Oil Corp. is having second thoughts about buying oil from Iran stating payment issues as the reason. Japan has already stopped oil purchase by stating transportation as their main point of concern. All this has brought ship-owners, banks, and insurers at risk from this sanction. As America is not ready to open about any waivers or negotiations the matters are up for worse as many countries may be left out of American financial system. All the consequences and patterns show that the America’s decision to squeeze off Iran’s business is succeeding very well.