Baku, Azerbaijan, April 23
By Leman Zeynalova – Trend:
The US decision on ending Iran sanctions waiver is tied to a few factors namely another step in squeezing Iran, Dr. Theodore Karasik, Senior Advisor at Gulf State Analytics told Trend.
The US State Department said that the country won’t issue additional reduction exceptions to existing importers of Iranian oil.
"Today we are announcing the United States will not issue any additional Significant Reduction Exceptions to existing importers of Iranian oil. The Trump Administration has taken Iran’s oil exports to historic lows, and we are dramatically accelerating our pressure campaign in a calibrated way that meets our national security objectives while maintaining well supplied global oil markets. We stand by our allies and partners as they transition away from Iranian crude to other alternatives. We have had extensive and productive discussions with Saudi Arabia, the United Arab Emirates, and other major producers to ease this transition and ensure sufficient supply. This, in addition to increasing U.S. production, underscores our confidence that energy markets will remain well supplied," reads the message.
Karasik noted that the point of going to zero is to maximize pressure on Iran and boost oil prices.
"That boost is important for Arab oil producers who need the price of oil at a certain level even to balance their budgets," the expert believes.
He noted that naturally the reaction from Iran is quite harsh and threats to close the strait are not new and in fact are quite old so all players know that any threat will be dealt with appropriately and the Strait of Hormuz open after 30 days if there's a problem.
"The decision to do this now is tied to a few factors namely another step in squeezing Iran and its entire Global Network into a retreat but also more importantly is that the cloud of Mueller has dissipated for now and the White House and the lower Gulf States are moving very quickly," Karasik concluded.
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