World prepares for US sanctions on Iran

Iranians monitor the stock market at the stock exchange in Tehran on May 8, 2018. Renewed nuclear sanctions would certainly cause severe problems for Iran's economy, but much of the damage has already been done by the uncertainty created by the US and myriad home-grown problems. (AFP / ATTA KENARE)
Updated 12 May 2018
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World prepares for US sanctions on Iran

  • Global shipping companies, traders, insurers and banks look at pulling the plug on business with Tehran after Donald Trump’s decision to reimpose sanctions on Iran.
  • Reuters cites sources at global trading companies predicting an imminent drop in Iranian exports due to banking issues, such as availability of trade finance.

LONDON:  US President Donald Trump’s decision to reimpose sanctions on Iran is forcing global shipping companies, traders, insurers and banks to look at pulling the plug on business with Tehran, it emerged yesterday.

Swiss-headquartered private shipping group MSC said it would “comply with the (sanctions) timetable set out by the US government.”

Denmark’s Maersk Line said it had ceased acceptance of the specific cargoes blacklisted by the US Treasury this week.

On May 9, President Donald Trump broke with his European allies to announce US withdrawal from the international nuclear agreement with Tehran brokered by President Obama. Trump disclosed a phased reimposition of punitive sanctions, which will further damage an already weakened Iranian economy.

Among other things, Washington is imposing sanctions on the direct or indirect sale, supply, or transfer to or from Iran of graphite and raw or semi-finished metals such as aluminium and steel, and coal, Reuters reported. The US will separately re-impose sanctions on the provision of insurance and reinsurance.

Reuters cited sources at global trading companies predicting an imminent drop in Iranian exports due to banking issues, such as availability of trade finance.

A potential decline in oil volumes due to the sanctions could add to upward pressure on oil prices, which have gained almost 20 percent to around $78 per barrel since January. 

The price rise has also been bolstered by a decision by OPEC and Russia to cap production to reduce inventories that had built up during the boom that came to a halt in 2014.

Middle Eastern oil-producing countries have benefited this year from rising oil revenues, giving them headroom to increase spending to stimulate economies that faced austerity in the wake of the collapse of the crude price four years ago. 

Saudi Arabia’s first-quarter statement revealed increased government spending and a jump in central government receipts from new taxes, including VAT.


Arab, Muslim countries slam US ambassador’s remarks on Israel’s right to Mideast land

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Arab, Muslim countries slam US ambassador’s remarks on Israel’s right to Mideast land

JERUSALEM: Arab and Islamic countries issued a joint condemnation on Sunday of remarks by US ambassador to Israel Mike Huckabee, who suggested Israel had a biblical right to a vast swath of the Middle East.
Huckabee, a former Baptist minister and a fervent Israel supporter, was speaking on the podcast of far-right commentator and Israel critic Tucker Carlson.
In an episode released Friday, Carlson pushed Huckabee on the meaning of a biblical verse sometimes interpreted as saying that Israel is entitled to the land between the river Nile in Egypt and the Euphrates in Syria and Iraq.
In response, Huckabee said: “It would be fine if they took it all.”
When pressed, however, he continued that Israel was “not asking to take all of that,” adding: “It was somewhat of a hyperbolic statement.”
The backlash widened sharply on Sunday as more than a dozen Arab and Islamic governments — alongside three major regional organizations — issued a joint statement denouncing the US diplomat’s comments as “dangerous and inflammatory.”
The statement, released by the United Arab Emirates’ foreign ministry, was signed by the UAE, Egypt, Jordan, Indonesia, Pakistan, Turkiye, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, Lebanon, Syria and the State of Palestine, as well as the Organization of Islamic Cooperation, the Arab League and the Gulf Cooperation Council.
They said the comments contravene the UN Charter and efforts to de-escalate the Gaza war and advance a political horizon for a comprehensive settlement.
Iran joined the chorus with its foreign ministry accusing Huckabee on X of revealing “American active complicity” in what it called Israel’s “expansionist wars of aggression” against Palestinians.
Earlier, several Arab states had issued unilateral condemnations.
Saudi Arabia described the ambassador’s words as “reckless” and “irresponsible,” while Jordan said it was “an assault on the sovereignty of the countries of the region.”
Kuwait decried what it called a “flagrant violation of the principles of international law,” while Oman said the comments “threatened the prospects for peace” and stability in the region.
Egypt’s foreign ministry reaffirmed “that Israel has no sovereignty over the occupied Palestinian territory or any other Arab lands.”
The Palestinian Authority said on X that Huckabee’s words “contradict US President Donald Trump’s rejection of (Israel) annexing the West Bank.”
On Saturday, Huckabee published two posts on X further clarifying his position on other topics touched upon in the interview, but did not address his remark about the biblical verse.
The speaker of the Israeli parliament, Amir Ohana, praised Huckabee on X for his general pro-Israel stance in the interview, and accused Carlson of “falsehoods and manipulations.”
Carlson has recently found himself facing accusations of antisemitism, particularly following a lengthy, uncritical interview with self-described white nationalist Nick Fuentes — a figure who has praised Hitler, denied the Holocaust and branded American Jews as disloyal.