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Pompeo: Iranian Economy Will 'Crumble' Under Newly Imposed US Sanctions

07 November 2018
Pompeo: Iranian Economy Will 'Crumble' Under Newly Imposed US Sanctions

The visiting envoy also called for concreted action by the worldwide community to stand against USA unilateralism, and denounced the use of economic and trade options for imposing a country's political will on others.

"We have chose to issue temporary allotments to a handful countries responsive to the specific circumstances and to ensure a well supplied oil market", Pompeo said.

In May, Trump exited Iran's 2015 nuclear deal with six powers and Washington reimposed first round of sanctions on Iran in August.

Besides, the Iranian top diplomat touched on the possibility of negotiations between the United States and the Islamic republic under certain conditions.

In August, the European Commission revamped its Blocking Statute, a 1995 law created to help European companies and banks recover damages arising from United States sanctions on third parties.

Washington gave 180-day exemptions to eight importers - China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey.

Each of those countries has reduced their oil purchases from Iran and two have completely stopped importing Iranian oil until the sanctions are not lifted, Pompeo said. "We have the knowledge and the capability to manage the country's economic affairs", Foreign Ministry spokesman Bahram Qasemi told state TV on Friday.

A senior State Department official said Washington has been careful in applying pressure against Tehran so as not to drive up oil prices.

The same day as the sanctions were reimposed, SWIFT, the Belgium-based bank messaging system, suspended some Iranian banks from using its system.

President Donald Trump pulled out of the deal, called the Joint Comprehensive Plan of Action, in May, and Monday was the deadline to reimpose its sanctions.

On Monday morning the Iranian currency held largely stable, but everyone recognizes that it's going to take some time for the punitive sanctions to really bite.

The European Union, France, Germany and Britain said they regretted the United States decision and would seek to protect European companies doing legitimate business with Tehran.

Diplomats told Reuters last month that the new European Union mechanism to facilitate payments for Iranian oil exports should be legally in place by November 4 but not operational until early next year.

The Trump administration is providing waivers to eight countries, allowing them to continue to import oil from Iran, which Pompeo said was necessary "to ensure a well-supplied oil market". The latest round largely targets oil exports from Iran, OPEC's third-largest crude producer. US West Texas Intermediate (WTI) crude futures were at $62.98 a barrel, down 12c from their last settlement.

Prices rallied to near four-year highs in early October on expectations the imposition of sanctions would create a global supply shortage. "I don't want to lift oil prices". "We are standing up to a bullying enemy", said Iranian President Hassan Rouhani.

The curbs come as the United States is focused on U.S. congressional and gubernatorial elections on Tuesday.

Japan said on Tuesday it would soon raise Iran imports in accordance with the waivers.

Yesterday Iranian parliament's speaker, Ali Larijani, echoed Rouhani's remarks with a defiant message to the USA in which he insisted that Trump's reign will experience an inglorious end just like Saddam Hussain.

European leaders and representatives from Russian Federation and China defended the deal and urged Trump to allow them to continue to uphold it.