Iran crisis: US to apply fresh oil sanctions

Oil exports a crucial part of Iranian economy

US President Barack Obama has agreed on the introduction of fresh sanctions on buyers of Iranian oil.Mr Obama has determined that there is enough oil in the world market to avoid from suffering negative consequences for US allies of a boycott of Iranian oil.This move would allow the US to sanction foreign banks which are still involved in the oil trade with Iran.

Mr Obama said in a statement that he will continue to monitor the global market closely to ensure it is able handle the reduce of oil purchases from Iran. The US president was required to signed a law in December to determine by 31 March whether the market allowed countries to "significantly" cut down their purchases from Iran. 

Under the law sign in previously, Oil buyers have until 28 June to show they have significantly reduced the amount of oil they purchase from Iran or face being cut off from the US financial system. 

 Iran is also facing international pressure to address concerns over its nuclear enrichment programme.Western countries suspect Iran of attempting to develop a nuclear weapon. But Iran insists that the programme is purely for peace purposes.Correspondents say mounting pressure on Iran to make concessions over its nuclear programme has already been cited as one of the factors behind recent oil price rises.





The new measurement will be a heavy pressure to heavy importers such as China(20%), Japan(17%), India(16%), Italy(10%), South Korea(9%).But US also has had to make exception like Japan which have already cutting down the reliance of country on Iranian Oil.Besides that, Turkey also announce that they will be cutting down the oil imports by 20%.








Personally, I find unfair to Iran who is using the revenue for oil to develop their nuclear enrichment programme (which is *hopefully* as they said for peaceful purposes). Therefore I think they should be encouraged by US, who also has nuclear devices mind you.