The Strategist

Iran stops exporting oil to France and South Korea

08/13/2018 - 06:39

Iran's oil exports continued to decline in July on the eve of the full restoration of US sanctions against the country. European consumers are reducing purchases, and supplies to France and South Korea have completely stopped, the International Energy Agency (IEA) said in its monthly report.

"Iran's oil exports fell by 90,000 bpd to 2.19 million bpd, as European consumers are cutting volume of their purchases, and South Korea completely stopped them on the eve of the restoration of US sanctions (against Iran) in November," writes the IEA.

"According to Kpler ship tracking data, Iran's oil exports to Europe, including Turkey, fell by 140,000 barrels per day in July to 410,000 barrels in July, while in 2017 this figure averaged 750,000 barrels a day. barrels per day, and supplies to France have completely stopped," the agency said.

Moreover, according to the IEA, the US administration rejected French Total’s request to receive an exemption from US sanctions, which would allow the company to continue working in Iran and maintain its participation in 11 project in the South Pars.

On August 6, Trump announced signing of an executive order on restoration of US sanctions against Iran, canceled after the signing of the Joint Comprehensive Plan of Action (JCPOA) on the Iranian nuclear program.

As noted, US sanctions against Iran in the energy, shipping, shipbuilding and a number of other sectors will come into force in stages.

The first part of the US sanctions against Iran, which prohibits companies from conducting operations involving Iranian authorities related to the purchase of US government bonds, dollar assets and precious metals, came into force on August 7.

The second part of the US restrictive measures, under which the US authorities will ban purchase of Iran's oil, will enter into force on November 5, 2018. As noted, the second part of the sanctions also prohibits "financial, material and technological cooperation" with the National Oil of Iran, the oil trading company Naftiran Intertrade Company and the Central Bank of Iran.