The economic sanctions of the USA against Iran are now complete. This is especially felt by the Iranian population. Also, Oil prices could continue to rise. Europeans rely on the barter system.
The pressure on Iran is increasing. Because of the US-imposed sanctions are valid from this Thursday to complete. Who is now with Iran, subject to sanctions of the USA and can virtually do no more business with US companies.
Background the international nuclear agreement with Iran. The agreement was agreed in 2015, with Russia, Britain, France, Germany, China and the United States. It should prevent that Iran can build a nuclear bomb. In may 2018, however, the United States have been terminated under its President, Donald Trump, unilaterally, the agreement – and subsequent economic sanctions were re-introduced. Because the US and its allies in the Middle East, Saudi Arabia and Israel, to keep the government in Tehran for sponsors of international terrorism.
First and foremost, the sanctions target the Iranian Oil industry. Oil is the largest and most important source of income in the country. During a transitional time in the last half of the year, countries such as China, India and Turkey were allowed to continue to receive with impunity the Oil from Iran. This transitional period is now over.
The oil price attracts strong
Some experts see the drying up of the flow of oil from Iran as the price driver of Oil prices. “Oil prices have tightened quite considerably and may continue to rise,” says Martin Lück, chief economist for the German-speaking area at the asset Manager Blackrock. “The question now is how quickly other suppliers such as Saudi Arabia or Russia in the breach can jump.”
Since the beginning of the year the price of oil on world markets has risen from around 50 to 70 dollars. Iran is one of the largest oil-producing countries of the earth; and under its soil the world’s second-largest Deposits lie dormant carriers of fossil energy, so oil and natural gas.
The sanctions but most of all, Iran is hard; the country is in a severe recession. For the current year, Economists expect a contraction of the Iranian economy by up to five percent. Therefore, the government in Tehran has returned to the gasoline rationing: Only 60 litres per month must refer the consumer to the previous price of the equivalent of € 0.22/litre for each additional litre costs more than Double. The prices are for European standards, although still very low – but not for Iranians. Because the earn on average the equivalent of only around 300 euros per month. The country is very controversial rationing has resulted in country-wide violent protests.
The Iranian population is suffering from
“The Bad thing is that the recession is hitting the population very much, because equally, the prices go high,” says Martin Lück. “Every household must pay for what he buys every day, and more. The sets mainly the population under pressure – and subsequently, the policy.” The International monetary Fund (IMF) is concerned that due to the sanctions, the inflation rate in Iran this year, up to 40 percent could increase.
Whether all countries will follow in full the trade embargo against Iran, is still to be determined. “Our cooperation with Iran is open, transparent, lawful and legitimate and should be respected,” said a spokesman for the foreign Ministry in Beijing. Experts expect that China reduce its Oil imports from Iran, but not quite. China is extremely of Oil from other countries: Around 80 percent of its Oil covers the country through imports from countries such as Iran. Conversely, China is the most important Ölabnehmer for the country. In the past year, 29 million tons of oil were transported from Iran to China – the equivalent of six percent of the total Chinese Oil.
The Renaissance of barter
However, it should be for most countries a simple consideration, depending on the question, whether Iran or the US are important trading partners. In most cases, this will tilt the scales in the direction of the United States.
In Europe and finally the UK, France and Germany have founded a special purpose company for trading with Iran. The company, headquartered in Paris, is supposed to make US Dollar payments between the countries and Iran will lapse, and, ultimately, sanctions. Simply speaking it is a kind of exchange: Goods for Oil. However, Iran is getting impatient, because she is practically gone still in operation. Here, too, considerations on the part of the Europeans are likely to play a role. Because the solders currently working with the U.S. possible solutions to trade conflict.
The has worked hard to develop nuclear deal with Iran threatens to dissolve. In Tehran, Iranian Deputy foreign Minister Abbas Araghchi said, you have given diplomacy enough time. The recent Oil sanctions imposed by the US and the impotence of the other party to the contract, would have to do something against it led to hopelessness in his country. “The nuclear deal moves rapidly in the direction of the endpoint,” said Araghchi.