US sanctions came into effect Sunday to block Venezuela's economic lifeline of oil exports, in what Washington hopes will be a major blow in its fledgeling campaign to topple leftist <a href="https://www.wionews.com/world/pompeo-in-peru-to-maintain-regional-pressure-on-venezuelas-maduro-210223">President Nicolas Maduro</a>.

As of 12:01 am Washington time, the United States will take action against anyone who deals with state-owned Petroleos de Venezuela, or PDVSA, or any entity in which the company holds at least a 50 per cent stake.

It is among a volley of steps by President Donald Trump's administration to oust Maduro and install opposition leader Juan Guaido, who is recognized by more than 50 countries, including most in Latin America.

Just Friday, the Trump administration said it would block any US assets of Foreign Minister Jorge Arreaza, confirming it has no desire to negotiate with Maduro, a socialist firebrand who presides over a crumbling economy but has withstood three months of intense pressure.

Until the crisis, Venezuela exported 500,00 barrels a day to the United States, its largest customer, with PDVSA omnipresent, if not highly visible, through ownership of the Citgo refining and gas station chain.

The United States has already moved to put Citgo under the control of Guaido, who appointed his own board.

Even though sanctions legally came into force Sunday, "the reality is that the oil trade between the United States and Venezuela has been absolutely limited and fallen sharply," said Mariano de Alba, a Washington-based international law expert from Venezuela.

But the sanctions will still have an effect, with Washington vowing to enforce them against any foreign company with interactions in the United States -- including the US financial system, which dominates the globe.

As of Sunday, "there is no doubt that the sanctions are in force and that any company assumes bigger risks than they did before this date," de Alba said.

Searching for customers

Energy-hungry India was the third-biggest buyer of Venezuelan oil in 2017 after the United States and China and until recently had been a major source of cash.

But Indian companies have backed off in the face of US sanctions, making China and Russia the crucial economic and political backers of Maduro -- whose re-election last year was widely criticized for irregularities.

The sanctions take effect just as global oil markets are trending higher after the United States similarly demanded that all countries, notably India and China, stop buying oil from Iran.

Oil is the blood of Venezuela's crippled economy, accounting for 96 per cent of exports.

The country nonetheless is facing a major economic crisis, with projections that inflation could soar to a mind-boggling 10 million per cent this year.

Some 2.7 million Venezuelans have fled since 2015 faced with a shortage of basic goods and medicine, according to UN figures.

One immediate problem for Venezuela is not its exports but its imports. It used to rely on 120,000 barrels of light crude each day from the United States to blend with its heavier oil. It will need to turn to other suppliers to sell its own crude, increasing production costs.

US-based consultancy Rapidan Energy Group says PDVSA's production could temporarily fall by 200,000 barrels a day.

It would be a stunning further reduction for PDVSA which pumped 3.2 million a day in 2008, a figure that had nosedived to just 840,000 in March.

&nbsp;Blaming Maduro

The United States has wasted no opportunity to blame Maduro and his late predecessor Hugo Chavez for Venezuela's economic woes -- with Trump also trying to link their socialism to his Democratic foes at home.

Elliott Abrams, the US envoy leading the effort to oust Maduro, promised that "tens of billions of dollars" will flow into Venezuela to rebuild its economy.

"That recovery can only start when there is a fully inclusive government that represents all Venezuelans," Abrams said Thursday.

But a study by two prominent left-leaning US economists, Mark Weisbrot and Jeffrey Sachs, warned that the growing sanctions will "vastly" harm ordinary Venezuelans.

The study, released by the Center for Economic and Policy Research, found that Venezuela recorded more than 40,000 additional deaths between 2017 and 2018 as they blamed sanctions for shortages of food and medicine.

"American sanctions are deliberately aiming to wreck Venezuela's economy and thereby lead to regime change," Sachs said.

"It's a fruitless, heartless, illegal and failed policy, causing grave harm to the Venezuelan people."

US sanctions came into effect Sunday to block Venezuela's economic lifeline of oil exports, in what Washington hopes will be a major blow in its fledgeling campaign to topple leftist President Nicolas Maduro.

US sanctions came into effect Sunday to block Venezuela's economic lifeline of oil exports, in what Washington hopes will be a major blow in its fledgeling campaign to topple leftist President Nicolas Maduro. As of 12:01 am Washington time, the United States will take action against anyone who deals with state-owned Petroleos de Venezuela, or PDVSA, or any entity in which the company holds at least a 50 per cent stake. It is among a volley of steps by President Donald Trump's administration to oust Maduro and install opposition leader Juan Guaido, who is recognized by more than 50 countries, including most in Latin America. Just Friday, the Trump administration said it would block any US assets of Foreign Minister Jorge Arreaza, confirming it has no desire to negotiate with Maduro, a socialist firebrand who presides over a crumbling economy but has withstood three months of intense pressure. Until the crisis, Venezuela exported 500,00 barrels a day to the United States, its largest customer, with PDVSA omnipresent, if not highly visible, through ownership of the Citgo refining and gas station chain. The United States has already moved to put Citgo under the control of Guaido, who appointed his own board. Even though sanctions legally came into force Sunday, "the reality is that the oil trade between the United States and Venezuela has been absolutely limited and fallen sharply," said Mariano de Alba, a Washington-based international law expert from Venezuela. But the sanctions will still have an effect, with Washington vowing to enforce them against any foreign company with interactions in the United States -- including the US financial system, which dominates the globe. As of Sunday, "there is no doubt that the sanctions are in force and that any company assumes bigger risks than they did before this date," de Alba said. Searching for customers Energy-hungry India was the third-biggest buyer of Venezuelan oil in 2017 after the United States and China and until recently had been a major source of cash. But Indian companies have backed off in the face of US sanctions, making China and Russia the crucial economic and political backers of Maduro -- whose re-election last year was widely criticized for irregularities. The sanctions take effect just as global oil markets are trending higher after the United States similarly demanded that all countries, notably India and China, stop buying oil from Iran. Oil is the blood of Venezuela's crippled economy, accounting for 96 per cent of exports. The country nonetheless is facing a major economic crisis, with projections that inflation could soar to a mind-boggling 10 million per cent this year. Some 2.7 million Venezuelans have fled since 2015 faced with a shortage of basic goods and medicine, according to UN figures. One immediate problem for Venezuela is not its exports but its imports. It used to rely on 120,000 barrels of light crude each day from the United States to blend with its heavier oil. It will need to turn to other suppliers to sell its own crude, increasing production costs. US-based consultancy Rapidan Energy Group says PDVSA's production could temporarily fall by 200,000 barrels a day. It would be a stunning further reduction for PDVSA which pumped 3.2 million a day in 2008, a figure that had nosedived to just 840,000 in March. Blaming Maduro The United States has wasted no opportunity to blame Maduro and his late predecessor Hugo Chavez for Venezuela's economic woes -- with Trump also trying to link their socialism to his Democratic foes at home. Elliott Abrams, the US envoy leading the effort to oust Maduro, promised that "tens of billions of dollars" will flow into Venezuela to rebuild its economy. "That recovery can only start when there is a fully inclusive government that represents all Venezuelans," Abrams said Thursday. But a study by two prominent left-leaning US economists, Mark Weisbrot and Jeffrey Sachs, warned that the growing sanctions will "vastly" harm ordinary Venezuelans. The study, released by the Center for Economic and Policy Research, found that Venezuela recorded more than 40,000 additional deaths between 2017 and 2018 as they blamed sanctions for shortages of food and medicine. "American sanctions are deliberately aiming to wreck Venezuela's economy and thereby lead to regime change," Sachs said. "It's a fruitless, heartless, illegal and failed policy, causing grave harm to the Venezuelan people."

US oil sanctions take effect on Venezuela as crisis intensifies

By Nafis Alam

The US has unnerved the world oil market by ramping up the pressure in its long-running dispute with Iran. It has announced that, after May 1, it won’t renew the exemptions given to eight countries that enable them to buy Iranian oil. Those affected, which include China, India, Japan, Italy and South Korea, will face sanctions from Washington if they don’t comply. The move will likely squeeze global oil supply at a time when it is already struggling from disruptions in Venezuela, Libya and Nigeria. Indeed, the Brent crude price has already risen on the back of the announcement to $74 (£57) per barrel, the highest since last November.

President Donald Trump has said he is confident that a supply crunch can be avoided thanks to extra output from Saudi Arabia and the United Arab Emirates, but traders and Asian petrochemical firms are sceptical that these countries will fully comply. In recent months, Saudi Arabia and other OPEC members have cut supply dramatically to redress their fears that hefty US shale oil output and declining global energy demand could cause a supply glut that would batter prices.

In December the oil cartel, along with Russia and other allies, agreed to reduce output by 1.2m barrels per day (bpd), cutting the global total volume by more than 1 per cent. They have since exceeded those benchmarks, with Saudi Arabia alone reducing supply by 800,000 bpd in total. In March the kingdom slashed production to a four-year low of 9.82m bpd, making up the majority of OPEC’s reduction of 295,000 daily barrels for the month to 30.3m bpd.

Oil politics

Trump has already been calling on OPEC to raise production, with little success. The Saudis may be close allies of the Americans, but they will only act in concert with their OPEC counterparts and many around the table will be wary of risking reducing prices at an unpredictable time for the global economy.

No one ever forgets when the Saudis famously went against Western interests in the Arab Oil Embargo of 1973, in response to US policies with similarly global consequences: President Richard Nixon had scrapped the gold standard, heavily devaluing the US dollar, and then backed the Israelis in the Yom Kippur war against Egypt. Inflation-adjusted oil prices nearly doubled during the embargo from around US$26 per barrel in 1973 to over $46 per barrel the following year, sending economic shockwaves around the world.

America’s latest move against Iran is making things worse for the global economy at a time when it has already been under pressure from rising interest rates and trade wars. If Iran’s entire output were removed – a big if since it is far from certain that all countries will comply with the Americans – it would wipe another 1m bpd or so off the world supply.

Any resulting rise in oil prices would spread to other commodity prices, leading to inflationary pressure – particularly in countries affected by the end of waiver such as India, where inflation has already started picking up. Such countries would also see direct effects on their import bill and hence their balance of trade. For every dollar increase in oil rates in India, for instance, the import bill will rise by R110 billion (£1.2 billion) at a time when the country’s trade deficit already stands at over £8 billion.

In many cases, such economic effects are all too capable of being exported. Take South Korea, which is the second biggest oil importer from Iran after China. South Korea mainly imports condensate, an ultra-light form of crude oil used for petrochemical products like naptha which it exports to neighbouring countries. If these petrochemical exports fall because Korean prices are no longer competitive, its neighbours will have to look further afield, creating a trade imbalance in the region.

In the run-up to Trump’s campaign to be re-elected for a second presidential term next year – assuming he makes it that far – there is therefore a great deal riding on this US gambit. If OPEC does not step up to the plate, and the oil price continues surging upwards, it could yet become the moment when the longstanding fears around the health of the world economy finally crystallise into a full-blown downturn.

(Nafis Alam is Associate Professor, University of Reading)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/trumps-crackdown-on-irans-oil-exports-could-backfire-badly-with-serious-risks-to-global-economy-115852">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.) 
&nbsp; 
&nbsp;

By Nafis Alam The US has unnerved the world oil market by ramping up the pressure in its long-running dispute with Iran. It has announced that, after May 1, it won’t renew the exemptions given to eight countries that enable them to buy Iranian oil.

By Nafis Alam The US has unnerved the world oil market by ramping up the pressure in its long-running dispute with Iran. It has announced that, after May 1, it won’t renew the exemptions given to eight countries that enable them to buy Iranian oil. Those affected, which include China, India, Japan, Italy and South Korea, will face sanctions from Washington if they don’t comply. The move will likely squeeze global oil supply at a time when it is already struggling from disruptions in Venezuela, Libya and Nigeria. Indeed, the Brent crude price has already risen on the back of the announcement to $74 (£57) per barrel, the highest since last November. President Donald Trump has said he is confident that a supply crunch can be avoided thanks to extra output from Saudi Arabia and the United Arab Emirates, but traders and Asian petrochemical firms are sceptical that these countries will fully comply. In recent months, Saudi Arabia and other OPEC members have cut supply dramatically to redress their fears that hefty US shale oil output and declining global energy demand could cause a supply glut that would batter prices. In December the oil cartel, along with Russia and other allies, agreed to reduce output by 1.2m barrels per day (bpd), cutting the global total volume by more than 1 per cent. They have since exceeded those benchmarks, with Saudi Arabia alone reducing supply by 800,000 bpd in total. In March the kingdom slashed production to a four-year low of 9.82m bpd, making up the majority of OPEC’s reduction of 295,000 daily barrels for the month to 30.3m bpd. Oil politics Trump has already been calling on OPEC to raise production, with little success. The Saudis may be close allies of the Americans, but they will only act in concert with their OPEC counterparts and many around the table will be wary of risking reducing prices at an unpredictable time for the global economy. No one ever forgets when the Saudis famously went against Western interests in the Arab Oil Embargo of 1973, in response to US policies with similarly global consequences: President Richard Nixon had scrapped the gold standard, heavily devaluing the US dollar, and then backed the Israelis in the Yom Kippur war against Egypt. Inflation-adjusted oil prices nearly doubled during the embargo from around US$26 per barrel in 1973 to over $46 per barrel the following year, sending economic shockwaves around the world. America’s latest move against Iran is making things worse for the global economy at a time when it has already been under pressure from rising interest rates and trade wars. If Iran’s entire output were removed – a big if since it is far from certain that all countries will comply with the Americans – it would wipe another 1m bpd or so off the world supply. Any resulting rise in oil prices would spread to other commodity prices, leading to inflationary pressure – particularly in countries affected by the end of waiver such as India, where inflation has already started picking up. Such countries would also see direct effects on their import bill and hence their balance of trade. For every dollar increase in oil rates in India, for instance, the import bill will rise by R110 billion (£1.2 billion) at a time when the country’s trade deficit already stands at over £8 billion. In many cases, such economic effects are all too capable of being exported. Take South Korea, which is the second biggest oil importer from Iran after China. South Korea mainly imports condensate, an ultra-light form of crude oil used for petrochemical products like naptha which it exports to neighbouring countries. If these petrochemical exports fall because Korean prices are no longer competitive, its neighbours will have to look further afield, creating a trade imbalance in the region. In the run-up to Trump’s campaign to be re-elected for a second presidential term next year – assuming he makes it that far – there is therefore a great deal riding on this US gambit. If OPEC does not step up to the plate, and the oil price continues surging upwards, it could yet become the moment when the longstanding fears around the health of the world economy finally crystallise into a full-blown downturn. (Nafis Alam is Associate Professor, University of Reading) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Donald Trump’s crackdown on Iran’s oil exports could backfire badly – with serious risks to global economy

Iran's supreme leader Ayatollah Ali Khamenei on Wednesday called the end of <a href="https://www.wionews.com/business-economy/oil-dips-on-well-supplied-markets-despite-tighter-iran-sanctions-213127">oil sanction</a> waivers by the United States a "hostile measure" that "won't be left without a response".

"US efforts to boycott the sale of Iran's oil won't get them anywhere. We will export our oil as much as we need and we intend," his official English-language Twitter account said.&nbsp;

"They (the US) wishfully think they have blocked Iran oil sales, but our vigorous nation and vigilant officials, if they work hard, will open many blockades," Khamenei said on Twitter.

"Enemies have repeatedly, in vain, taken action against our great nation, revolution... but they must know Iranians won't give in," he added.

The United States on Monday demanded that <a href="https://www.wionews.com/world/us-to-announce-end-to-sanctions-waivers-for-iran-oil-imports-source-212482">buyers of Iranian oil stop purchases by May 1 or face sanctions</a>, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes.

Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organisation of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources.

US President Donald Trump has been clear to his national security team over the last few weeks that he wants the waivers to end, and national security adviser John Bolton has been working the issue within the administration.

The US&nbsp;reimposed sanctions in November on exports of Iranian oil after Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers. Washington is pressuring Iran to curtail its nuclear program and stop backing militant proxies across the Middle East.

Along with sanctions, Washington has also granted waivers to eight economies that had reduced their purchases of Iranian oil, allowing them to continue buying it without incurring sanctions for six more months. They were China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.

Iran's supreme leader Ayatollah Ali Khamenei on Wednesday called the end of oil sanction waivers by the United States a "hostile measure" that "won't be left without a response".

Iran's supreme leader Ayatollah Ali Khamenei on Wednesday called the end of oil sanction waivers by the United States a "hostile measure" that "won't be left without a response". "US efforts to boycott the sale of Iran's oil won't get them anywhere. We will export our oil as much as we need and we intend," his official English-language Twitter account said. "They (the US) wishfully think they have blocked Iran oil sales, but our vigorous nation and vigilant officials, if they work hard, will open many blockades," Khamenei said on Twitter. "Enemies have repeatedly, in vain, taken action against our great nation, revolution... but they must know Iranians won't give in," he added. The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes. Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organisation of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources. US President Donald Trump has been clear to his national security team over the last few weeks that he wants the waivers to end, and national security adviser John Bolton has been working the issue within the administration. The US reimposed sanctions in November on exports of Iranian oil after Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers. Washington is pressuring Iran to curtail its nuclear program and stop backing militant proxies across the Middle East. Along with sanctions, Washington has also granted waivers to eight economies that had reduced their purchases of Iranian oil, allowing them to continue buying it without incurring sanctions for six more months. They were China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.

US oil sanctions won't go 'without response': Iran

India will get additional supplies from other major oil producing countries to compensate for the loss of Iranian oil, Petroleum and Natural Gas Minister Dharmendra Pradhan said on Tuesday.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which had allowed Iran's eight biggest buyers, most of them in Asia, to continue to import limited volumes.

Pradhan said on Twitter that India has put in place a robust plan for adequate supply of crude oil to refineries.

"Indian refineries are fully prepared to meet the national demand for petrol, diesel and other petroleum products," he said.

India's Ministry of External Affairs also said in a statement, "The government will continue to work with partner nations, including with the US, to find all possible ways to protect India's energy and economic security interests."

Reuters had reported last week that Indian refiners are increasing their planned purchases from the nations of the Organization of the Petroleum Exporting Countries (OPEC), Mexico and the United States to hedge against loss of Iranian oil.

Refiners in India, the world's third-biggest oil importer and Iran's top oil client after China, had almost halved their Iranian oil purchases since November when petroleum sanctions went into effect. At the time, the United States granted waivers from sanctions, known as significant reduction exceptions (SRE), for six months to countries that purchased some amounts of Iranian crude, including India.

US President Donald Trump said on Monday that Saudi Arabia and other OPEC nations could "more than make up" for any drop in Iranian oil supplies to global markets now that the waivers are ended.

Saudi Arabia, the world's biggest oil exporter, said on Monday it would coordinate with other oil producers to ensure an adequate crude supply and a balanced market.

India will get additional supplies from other major oil producing countries to compensate for the loss of Iranian oil, Petroleum and Natural Gas Minister Dharmendra Pradhan said on Tuesday.

India will get additional supplies from other major oil producing countries to compensate for the loss of Iranian oil, Petroleum and Natural Gas Minister Dharmendra Pradhan said on Tuesday. The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which had allowed Iran's eight biggest buyers, most of them in Asia, to continue to import limited volumes. Pradhan said on Twitter that India has put in place a robust plan for adequate supply of crude oil to refineries. "Indian refineries are fully prepared to meet the national demand for petrol, diesel and other petroleum products," he said. India's Ministry of External Affairs also said in a statement, "The government will continue to work with partner nations, including with the US, to find all possible ways to protect India's energy and economic security interests." Reuters had reported last week that Indian refiners are increasing their planned purchases from the nations of the Organization of the Petroleum Exporting Countries (OPEC), Mexico and the United States to hedge against loss of Iranian oil. Refiners in India, the world's third-biggest oil importer and Iran's top oil client after China, had almost halved their Iranian oil purchases since November when petroleum sanctions went into effect. At the time, the United States granted waivers from sanctions, known as significant reduction exceptions (SRE), for six months to countries that purchased some amounts of Iranian crude, including India. US President Donald Trump said on Monday that Saudi Arabia and other OPEC nations could "more than make up" for any drop in Iranian oil supplies to global markets now that the waivers are ended. Saudi Arabia, the world's biggest oil exporter, said on Monday it would coordinate with other oil producers to ensure an adequate crude supply and a balanced market.

Govt to get extra oil from major producers to make up for Iran oil loss: Minister

China warned Tuesday that the <a href="https://www.wionews.com/business-economy/oil-prices-hit-highest-since-november-as-us-to-tighten-iran-sanctions-212879">US decision to impose sanctions</a> on buyers of Iranian oil will "intensify turmoil" in the Middle East and in the international energy market.

The White House announced Monday it was calling an end to six-month waivers that had exempted several countries -- including major importer China -- from unilateral US sanctions on Iranian oil exports.

"China firmly opposes the US implementation of unilateral sanctions and its so-called long-armed jurisdiction," foreign ministry spokesman Geng Shuang said at a regular press briefing.

"The relevant move by the United States will intensify the turmoil in the Middle East and the turmoil in the international energy market."

In seeking to reduce Iran's oil exports to zero, the Trump administration is targeting the country's top revenue earner in its latest no-holds-barred move to crush the economy and scale back the clerical regime's influence.

Eight governments were initially given the six-month reprieve on oil sanctions that had been imposed last year by the United States. The exemption will now end on May 2.

Greece, Italy, Japan, South Korea and Taiwan -- have already ended or heavily reduced their purchases from Iran.

The other three are China, India and Turkey, with Ankara vowing to defy the US demands.

For its part, China will "continue to work in order to safeguard the lawful and legitimate rights of Chinese companies," Geng said.

Japan's Cabinet Secretary Yoshihide Suga told reporters that Tokyo hopes to "exchange opinions with related Japanese firms and discuss necessary actions to avoid (negative) impact on energy supply in Japan."

India's Petroleum Minister Dharmendra Pradhan posted to Twitter that New Delhi would receive "additional supplies from other major oil producing countries," adding that refineries were "fully prepared to meet the national demand for petrol, diesel &amp; other Petroleum products."

Refiners in South Korea -- which has few natural resources of its own -- have relied heavily on Iranian petroleum, especially oil condensate used to produce petrochemical products.

The country imported 2.4 million tonnes of condensate from Iran in the first quarter of this year according to the Korea Petrochemical Industry Association (KPIA), an umbrella industry group, more than 30 per cent of its total purchases.

Iranian condensate is cheaper than others and has the "best quality", a spokesman for Hanwha Total, one of South Korea's major petrochemical firms, told AFP.

"We now have to look for the second-best instead," he said.

Different regions produce different mixes of hydrocarbons, added KPIA researcher Choi Hong-jun, so that users' factory equipment is "best suited to processing Iranian condensate. It will cost extra just to adjust it."

South Korean experts said the US withdrawal of waivers was long anticipated and companies had prepared back-up plans involving diversified import options including Qatar and Australia.

"There will be a limited impact," said a trade ministry official in Seoul.

But despite Washington's insistence that there will be no more exemptions South Korea's foreign ministry said it would continue its "utmost efforts" to have the waiver extended.

China warned Tuesday that the US decision to impose sanctions on buyers of Iranian oil will "intensify turmoil" in the Middle East and in the international energy market.

China warned Tuesday that the US decision to impose sanctions on buyers of Iranian oil will "intensify turmoil" in the Middle East and in the international energy market. The White House announced Monday it was calling an end to six-month waivers that had exempted several countries -- including major importer China -- from unilateral US sanctions on Iranian oil exports. "China firmly opposes the US implementation of unilateral sanctions and its so-called long-armed jurisdiction," foreign ministry spokesman Geng Shuang said at a regular press briefing. "The relevant move by the United States will intensify the turmoil in the Middle East and the turmoil in the international energy market." In seeking to reduce Iran's oil exports to zero, the Trump administration is targeting the country's top revenue earner in its latest no-holds-barred move to crush the economy and scale back the clerical regime's influence. Eight governments were initially given the six-month reprieve on oil sanctions that had been imposed last year by the United States. The exemption will now end on May 2. Greece, Italy, Japan, South Korea and Taiwan -- have already ended or heavily reduced their purchases from Iran. The other three are China, India and Turkey, with Ankara vowing to defy the US demands. For its part, China will "continue to work in order to safeguard the lawful and legitimate rights of Chinese companies," Geng said. Japan's Cabinet Secretary Yoshihide Suga told reporters that Tokyo hopes to "exchange opinions with related Japanese firms and discuss necessary actions to avoid (negative) impact on energy supply in Japan." India's Petroleum Minister Dharmendra Pradhan posted to Twitter that New Delhi would receive "additional supplies from other major oil producing countries," adding that refineries were "fully prepared to meet the national demand for petrol, diesel & other Petroleum products." Refiners in South Korea -- which has few natural resources of its own -- have relied heavily on Iranian petroleum, especially oil condensate used to produce petrochemical products. The country imported 2.4 million tonnes of condensate from Iran in the first quarter of this year according to the Korea Petrochemical Industry Association (KPIA), an umbrella industry group, more than 30 per cent of its total purchases. Iranian condensate is cheaper than others and has the "best quality", a spokesman for Hanwha Total, one of South Korea's major petrochemical firms, told AFP. "We now have to look for the second-best instead," he said. Different regions produce different mixes of hydrocarbons, added KPIA researcher Choi Hong-jun, so that users' factory equipment is "best suited to processing Iranian condensate. It will cost extra just to adjust it." South Korean experts said the US withdrawal of waivers was long anticipated and companies had prepared back-up plans involving diversified import options including Qatar and Australia. "There will be a limited impact," said a trade ministry official in Seoul. But despite Washington's insistence that there will be no more exemptions South Korea's foreign ministry said it would continue its "utmost efforts" to have the waiver extended.

US sanctions over Iran oil will intensify Mideast turmoil: China

Oil prices hit their highest since November on Tuesday after <a href="https://www.wionews.com/world/us-oil-sanctions-principally-illegal-do-not-attach-any-value-to-it-iran-212672">Washington announced all waivers on imports of sanctions-hit Iranian oil</a> would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

Despite the move, spare capacity from other suppliers such as Saudi Arabia might be able to ensure oil markets cope with a cut in Iranian exports.

<a href="https://www.wionews.com/business-economy/world-stocks-splutter-as-oil-races-to-near-six-month-high-212872">Brent crude </a>futures were at $74.67 per barrel at 0855 GMT, up 63 cents or 0.85 per cent from their last close, after hitting their highest level since November at $74.70.

US West Texas Intermediate crude futures marked their strongest since October 2018 at $66.14 per barrel, up 59 cents or 0.9 per cent from their previous settlement.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes.

Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources.

US President Donald Trump is confident that Saudi Arabia and the United Arab Emirates will fulfil their pledges to make up the difference in oil markets, a US official told reporters.

Saudi Energy Minister Khalid al-Falih said on Monday that his country would "coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance".

Saudi Arabia is the world's top oil exporter and de facto leader of OPEC, which has led global supply cuts since the start of the year aimed at propping up crude prices.

The group is set to meet in June to discuss output policy.

Barclays bank said in a note that the US decision took many market participants by surprise and would "lead to a significant tightening of oil markets".

The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela's oil exports.

US bank Goldman Sachs said an expected decline of 900,000 bpd in Iranian exports stood "versus immediately available and demonstrated spare capacity of 2.0 million bpd, which is set to grow further later this year".

Oil prices hit their highest since November on Tuesday after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

Oil prices hit their highest since November on Tuesday after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply. Despite the move, spare capacity from other suppliers such as Saudi Arabia might be able to ensure oil markets cope with a cut in Iranian exports. Brent crude futures were at $74.67 per barrel at 0855 GMT, up 63 cents or 0.85 per cent from their last close, after hitting their highest level since November at $74.70. US West Texas Intermediate crude futures marked their strongest since October 2018 at $66.14 per barrel, up 59 cents or 0.9 per cent from their previous settlement. The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes. Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources. US President Donald Trump is confident that Saudi Arabia and the United Arab Emirates will fulfil their pledges to make up the difference in oil markets, a US official told reporters. Saudi Energy Minister Khalid al-Falih said on Monday that his country would "coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance". Saudi Arabia is the world's top oil exporter and de facto leader of OPEC, which has led global supply cuts since the start of the year aimed at propping up crude prices. The group is set to meet in June to discuss output policy. Barclays bank said in a note that the US decision took many market participants by surprise and would "lead to a significant tightening of oil markets". The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela's oil exports. US bank Goldman Sachs said an expected decline of 900,000 bpd in Iranian exports stood "versus immediately available and demonstrated spare capacity of 2.0 million bpd, which is set to grow further later this year".

Oil prices hit highest since November as US to tighten Iran sanctions

Oil prices jumped to near six-month highs on Tuesday as the <a href="https://www.wionews.com/world/us-oil-sanctions-principally-illegal-do-not-attach-any-value-to-it-iran-212672">United States tightened sanctions on Iran</a>, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers.

News that the US had told buyers of Iranian oil to stop purchases by May 1 or face sanctions pushed Brent towards $75 a barrel and made for a lively return from the four-day Easter break for Europe's markets.

Oil and gas shares jumped more than 1.7 per cent for their best start in six weeks, though almost every other sector suffered. So did bonds, as higher energy costs hung over profits and nudged up inflation expectations.

Foreign-exchange market volatility was still largely absent. The dollar held near a three-week high, but the usual beneficiaries of higher oil prices, the Canadian dollar and Norwegian crown, dipped to $1.33 and $8.52 respectively.

"Oil is interesting, but the interesting thing for FX is that we are not getting the usual feed-through in the petro currencies," said Saxo bank's head of FX strategy, John Hardy, adding that might be caused by questions about Chinese stimulus.

Both the Canadian dollar and the crown had gained on Monday, and the Russian rouble, another petro currency, hit its highest against the euro in more than a year its highest against the dollar in a month.

Overnight, MSCI's index of Asia-Pacific shares ended 0.1 per cent higher and Japan's Nikkei closed up 0.2 per cent. Oil and gas gains were offset by losses for airlines and other transport shares facing higher fuel costs.

The White House said after its Iran move it was working with Saudi Arabia and the United Arab Emirates to ensure oil markets were "adequately supplied," but traders had already been worried about tight supplies.

Oil prices are up nearly 50 per cent since late December, and before the re-imposition of sanctions last year Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries, at around 3 million barrels per day.

Oil prices are "not so high that it crushes manufacturing by putting energy-price inputs up, but it is producing a nice boost to oil-producing nations," said Robert Carnell, Singapore-based chief economist and head of research for the Asia Pacific at ING.

Carnell sees Brent crude's sweet spot at between $65 and $75 per barrel, "Above this, you may see some negative impact."

Sri Lanka

Sri Lanka's stock market and government bonds both fell as trading resumed after bombings had killed more than 300 people on Sunday. Tourism is likely to collapse, which would deal a serious blow to the island's economy and financial markets.

The International Monetary Fund last month extended a $1.5 billion loan to Sri Lanka into 2020, a key step in keeping foreign investors involved in what so far this year has been a top-performing frontier debt market.

In China, major benchmarks dipped in and out of negative territory amid concern that Beijing will slow the pace of policy easing after unexpectedly strong first-quarter economic data last week.

China's blue-chip stocks have surged over 30 per cent so far this year on expectations of more stimulus and hope Beijing and Washington will reach an agreement to end their nine-month trade dispute.

"We've had a fantastic run in Chinese equities year-to-date. Some profit taking is completely normal. I don't think China is changing its policy that quickly," said Stefan Hofer, chief investment strategist at LGT Bank Asia in Hong Kong.

Oil prices jumped to near six-month highs on Tuesday as the United States tightened sanctions on Iran, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers.

Oil prices jumped to near six-month highs on Tuesday as the United States tightened sanctions on Iran, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers. News that the US had told buyers of Iranian oil to stop purchases by May 1 or face sanctions pushed Brent towards $75 a barrel and made for a lively return from the four-day Easter break for Europe's markets. Oil and gas shares jumped more than 1.7 per cent for their best start in six weeks, though almost every other sector suffered. So did bonds, as higher energy costs hung over profits and nudged up inflation expectations. Foreign-exchange market volatility was still largely absent. The dollar held near a three-week high, but the usual beneficiaries of higher oil prices, the Canadian dollar and Norwegian crown, dipped to $1.33 and $8.52 respectively. "Oil is interesting, but the interesting thing for FX is that we are not getting the usual feed-through in the petro currencies," said Saxo bank's head of FX strategy, John Hardy, adding that might be caused by questions about Chinese stimulus. Both the Canadian dollar and the crown had gained on Monday, and the Russian rouble, another petro currency, hit its highest against the euro in more than a year its highest against the dollar in a month. Overnight, MSCI's index of Asia-Pacific shares ended 0.1 per cent higher and Japan's Nikkei closed up 0.2 per cent. Oil and gas gains were offset by losses for airlines and other transport shares facing higher fuel costs. The White House said after its Iran move it was working with Saudi Arabia and the United Arab Emirates to ensure oil markets were "adequately supplied," but traders had already been worried about tight supplies. Oil prices are up nearly 50 per cent since late December, and before the re-imposition of sanctions last year Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries, at around 3 million barrels per day. Oil prices are "not so high that it crushes manufacturing by putting energy-price inputs up, but it is producing a nice boost to oil-producing nations," said Robert Carnell, Singapore-based chief economist and head of research for the Asia Pacific at ING. Carnell sees Brent crude's sweet spot at between $65 and $75 per barrel, "Above this, you may see some negative impact." Sri Lanka Sri Lanka's stock market and government bonds both fell as trading resumed after bombings had killed more than 300 people on Sunday. Tourism is likely to collapse, which would deal a serious blow to the island's economy and financial markets. The International Monetary Fund last month extended a $1.5 billion loan to Sri Lanka into 2020, a key step in keeping foreign investors involved in what so far this year has been a top-performing frontier debt market. In China, major benchmarks dipped in and out of negative territory amid concern that Beijing will slow the pace of policy easing after unexpectedly strong first-quarter economic data last week. China's blue-chip stocks have surged over 30 per cent so far this year on expectations of more stimulus and hope Beijing and Washington will reach an agreement to end their nine-month trade dispute. "We've had a fantastic run in Chinese equities year-to-date. Some profit taking is completely normal. I don't think China is changing its policy that quickly," said Stefan Hofer, chief investment strategist at LGT Bank Asia in Hong Kong.

World stocks splutter as oil races to near six-month high

Iraq is ready to boost oil exports by 250,000 barrels a day to compensate for any shortfalls once US sanctions waivers for Iranian oil end, a government official said Monday.

The US last year reimposed tough sanctions against Iran's energy sector but granted select countries six-month waivers to continue importing oil products from Tehran.

Those exemptions will end in early May, the White House announced on Monday.

US President Donald Trump said that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) would "more than make up" the resulting difference in the oil supply.

Iraq, the cartel's second-largest producer, has the capacity to increase its crude oil exports, a top government official told AFP on Monday.

"We are ready to export another quarter-million barrels daily. The market's needs will become clearer in the coming days," he said.

The official did not say whether Iraq had already discussed the increase with OPEC or with the United States.

The countries that had received exemptions in November were China, India, Japan, South Korea, Turkey, Italy, Greece and Taiwan.

Iraq received a separate waiver that would allow it to continue importing Iranian gas and electricity, crucial to stop up the widespread power shortages in Iraq.&nbsp;

That initial exemption has been extended twice, and is set to end in June.

Iraq last month exported just under 3.4 million barrels per day, after having agreed last year to trim production alongside other producers so that prices would go up.&nbsp;

Oil prices hit a five-month high earlier this month at more than $70 per barrel.&nbsp;

Iraq is ready to boost oil exports by 250,000 barrels a day to compensate for any shortfalls once US sanctions waivers for Iranian oil end, a government official said Monday.

Iraq is ready to boost oil exports by 250,000 barrels a day to compensate for any shortfalls once US sanctions waivers for Iranian oil end, a government official said Monday. The US last year reimposed tough sanctions against Iran's energy sector but granted select countries six-month waivers to continue importing oil products from Tehran. Those exemptions will end in early May, the White House announced on Monday. US President Donald Trump said that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) would "more than make up" the resulting difference in the oil supply. Iraq, the cartel's second-largest producer, has the capacity to increase its crude oil exports, a top government official told AFP on Monday. "We are ready to export another quarter-million barrels daily. The market's needs will become clearer in the coming days," he said. The official did not say whether Iraq had already discussed the increase with OPEC or with the United States. The countries that had received exemptions in November were China, India, Japan, South Korea, Turkey, Italy, Greece and Taiwan. Iraq received a separate waiver that would allow it to continue importing Iranian gas and electricity, crucial to stop up the widespread power shortages in Iraq. That initial exemption has been extended twice, and is set to end in June. Iraq last month exported just under 3.4 million barrels per day, after having agreed last year to trim production alongside other producers so that prices would go up. Oil prices hit a five-month high earlier this month at more than $70 per barrel.

Iraq 'ready' to boost crude exports after Iran waivers end

In early March 2019, President Donald Trump, announced that he would withdraw duty benefits on all imports from India. These benefits had been offered under the Generalised System of Preferences (GSP), a programme that allows duty-free imports of specified goods from beneficiary countries. &nbsp;

The scheme, introduced in 1974, was intended as a way of helping developing nations as well as giving the US manufacturers access to cheap raw material. &nbsp;

The March announcement should not have come as a surprise to India. In November, the US withdrew GSP benefits to some 50 products from India. &nbsp;

Earlier in 2018, the Office of the US Trade Representative (USTR) had begun an eligibility review of India, based on complaints received from US dairy associations and the medical technology association. &nbsp;

The trigger for these trade bodies to focus on India was because India had made it difficult for them to enter the market. &nbsp;

In the case of dairy, India had asked dairy importers to certify their products as being from livestock that had not been fed animal parts. &nbsp;

The reason for this is that dairy products in India are often used in religious rites, and need to be ritually “pure”. &nbsp;

Medical technology companies, meanwhile, have been hit hard by the Indian government providing heavy subsidies on medical equipment in order to make such equipment easily accessible. This “populist” move has meant that American companies cannot charge a premium on their products.

According to the USTR, beneficiary countries under GSP are expected to provide “equitable and reasonable access to its markets” to US companies. &nbsp;

India, however, has imposed several measures that the US considers protectionist, including the two steps mentioned above. &nbsp;

What does this mean for Indian exports? According to the government, very little. &nbsp;

Official sources have downplayed the impact of GSP removal. The numbers they quote seem convincing -- Indian exports to the US are valued at $5.6 billion; Indian trade authorities say that GSP covers some $190 million worth of exports and so the impact of removing India from GSP will be minimal. But any negative impact could hit the country’s balance of trade, and a big trade deficit will hit the GDP. 
 
Exporters will also take a hit. Small and medium enterprises (SMEs) form the bulk of exporters who benefit under GSP, and having to pay duty on their goods could prove too expensive for them. &nbsp;

Many of these exporters are in labour-intensive industries, so if they go out of business, it could hit the labour market as well. Leather and footwear, chemicals, and bulk drugs will be the sectors most affected.

On the whole, other exports will not feel the pinch. However, the fear is that once the US has used GSP as a stick, it will make other exports from India unviable. &nbsp;

In the case of seafood, the US has already imposed stringent import regulations; given that the bulk of Indian seafood exports is to the US, these norms will hit India hard. &nbsp;

There’s also the possibility of the US imposing or increasing anti-dumping duties on a range of other goods.

The impact on exporters will likely be softened over the medium term as these players look at markets outside the US. While China and the US may both be closed to these exporters, there’s still a large market in the rest of the world. &nbsp;

Judging by the state of internal politics, and with elections coming up soon, the GSP issue may soon be buried or resolved to India’s benefit. &nbsp;

That’s because removing India from the GSP will mean that Indian goods will cost more in the US, which means that the cost of raw material for American industry could go up too.

Meanwhile, there are steps India can take to protect its exporters. For one, it can approach the World Trade Organisation. Under the Enabling Clause of the WTO’s General Agreement on Trade and Tariffs (to which both India and the US are signatories), developed countries can offer preferential treatment on a non-reciprocal basis. By removing India from the GSP on the grounds that the country isn’t providing access to its market, the US is violating this GATT clause. &nbsp;

India can take this matter to the WTO and, judging by a past victory against the European Union, win. 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-india-s-removal-from-gsp-new-delhi-can-move-wto-2740316">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.) 
&nbsp;

&nbsp;

In early March 2019, President Donald Trump, announced that he would withdraw duty benefits on all imports from India. These benefits had been offered under the Generalised System of Preferences (GSP), a programme that allows duty-free imports of specified goods from beneficiary countries.

In early March 2019, President Donald Trump, announced that he would withdraw duty benefits on all imports from India. These benefits had been offered under the Generalised System of Preferences (GSP), a programme that allows duty-free imports of specified goods from beneficiary countries. The scheme, introduced in 1974, was intended as a way of helping developing nations as well as giving the US manufacturers access to cheap raw material. The March announcement should not have come as a surprise to India. In November, the US withdrew GSP benefits to some 50 products from India. Earlier in 2018, the Office of the US Trade Representative (USTR) had begun an eligibility review of India, based on complaints received from US dairy associations and the medical technology association. The trigger for these trade bodies to focus on India was because India had made it difficult for them to enter the market. In the case of dairy, India had asked dairy importers to certify their products as being from livestock that had not been fed animal parts. The reason for this is that dairy products in India are often used in religious rites, and need to be ritually “pure”. Medical technology companies, meanwhile, have been hit hard by the Indian government providing heavy subsidies on medical equipment in order to make such equipment easily accessible. This “populist” move has meant that American companies cannot charge a premium on their products. According to the USTR, beneficiary countries under GSP are expected to provide “equitable and reasonable access to its markets” to US companies. India, however, has imposed several measures that the US considers protectionist, including the two steps mentioned above. What does this mean for Indian exports? According to the government, very little. Official sources have downplayed the impact of GSP removal. The numbers they quote seem convincing -- Indian exports to the US are valued at $5.6 billion; Indian trade authorities say that GSP covers some $190 million worth of exports and so the impact of removing India from GSP will be minimal. But any negative impact could hit the country’s balance of trade, and a big trade deficit will hit the GDP. Exporters will also take a hit. Small and medium enterprises (SMEs) form the bulk of exporters who benefit under GSP, and having to pay duty on their goods could prove too expensive for them. Many of these exporters are in labour-intensive industries, so if they go out of business, it could hit the labour market as well. Leather and footwear, chemicals, and bulk drugs will be the sectors most affected. On the whole, other exports will not feel the pinch. However, the fear is that once the US has used GSP as a stick, it will make other exports from India unviable. In the case of seafood, the US has already imposed stringent import regulations; given that the bulk of Indian seafood exports is to the US, these norms will hit India hard. There’s also the possibility of the US imposing or increasing anti-dumping duties on a range of other goods. The impact on exporters will likely be softened over the medium term as these players look at markets outside the US. While China and the US may both be closed to these exporters, there’s still a large market in the rest of the world. Judging by the state of internal politics, and with elections coming up soon, the GSP issue may soon be buried or resolved to India’s benefit. That’s because removing India from the GSP will mean that Indian goods will cost more in the US, which means that the cost of raw material for American industry could go up too. Meanwhile, there are steps India can take to protect its exporters. For one, it can approach the World Trade Organisation. Under the Enabling Clause of the WTO’s General Agreement on Trade and Tariffs (to which both India and the US are signatories), developed countries can offer preferential treatment on a non-reciprocal basis. By removing India from the GSP on the grounds that the country isn’t providing access to its market, the US is violating this GATT clause. India can take this matter to the WTO and, judging by a past victory against the European Union, win. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

India-US trade bumps: New Delhi can move WTO on its removal from GSP

Iranian authorities showcased what they said were 114 advances in their domestic nuclear technology industry achieved over the course of a year despite the United States decision to unilaterally withdraw from the 2015 nuclear deal.

Tehran insists that its nuclear program is peaceful and falls well within the confines of the historic deal, which saw Iran limit its atomic program in exchange for a mild alleviation of international economic sanctions.

This year, the Atomic Energy Organization of Iran's (AEOI) tally of achievements – which outnumbered the previous year by 31 – coincided with Iranian <a href="https://www.wionews.com/world/iran-president-says-us-leader-of-world-terrorism-after-trump-designated-republican-guard-as-terrorists-209135">President Hassan Rouhani</a>'s announcement that he would authorize the installation of advanced IR-6 centrifuges.&nbsp;

"The US policy of harassment cannot hinder our progress in the field of nuclear technology," Ali Akbar Saheli, the head of the AEOI, said in a ceremony this week.&nbsp;

Notable advances in the field included new control systems to monitor nuclear processes; two nuclear medicines, including Yttrium-90, which is used in radiation therapy to treat cancer; a medical linear accelerator, which tailor x-rays to a patient's needs and the production of oxygen-18, which can be used in the medical industry in things like positron-emission tomography (PET scans).&nbsp;

Speaking to Efe, Ali Asghar Zarean, Salehi's special advisor, said it had taken four years of investigation to be able to produce oxygen-18, which could now be commercialized.&nbsp;

"Production capacity is around 100 kilograms (220 pounds) a year. We are in the first stage producing about 50 kilos but our annual domestic consumption is very few kilos, for that reason we're moving towards exportation.&nbsp;

Iran was also ready to export its centrifuges, he said.&nbsp;

According to Zarean, the AEOI has managed to domestically design and produce "whatever kind" of centrifuge for use in various industries, like medicine.&nbsp;

Iran was forced to produce the machines domestically because of sanctions.&nbsp;

This week a network of 20 IR-6 centrifuges was installed at the Natanz nuclear plant in central Iran.

Each IR-6 centrifuge is eight times as powerful than the more primitive IR-1 designs, according to Zarean.&nbsp;

Rouhani used this achievement to level a warning at the US.&nbsp;

"If you were scared about the out IR-1 centrifuges in the past, you should know now that we are launching a network of 20 IR-6 models and that, if you keep up the pressure, we will unveil a network of IR-8 centrifuges in the near future," he said.&nbsp;

The use of IR-8 centrifuges in Iran is prohibited by the 2015 nuclear deal.&nbsp;

The accord was signed by Iran and the five permanent members of the United Nations Security Council (China, France, Russia, the United Kingdom, the United States) plus Germany.&nbsp;

However, US President Donald Trump's decision to pull out of the framework and to reimpose – and, indeed strengthen – sanctions on Iran has left the deal on shaky ground.&nbsp;

Trump's administration said the deal would only delay Iran's acquisition of nuclear weapons, despite the fact that the International Atomic Energy Agency has confirmed Iran's compliance to with the accord 14 times.&nbsp;

The nuclear deal meant Iran had to dismantle or remodel certain atomic plants and temporary limit investigations that used nuclear material or technology, such as its uranium enrichment program.&nbsp;

Salehi said all of Iran's achievements in 2018 were in line with the IAEA guidelines.&nbsp;

Zarean warned, however, that Iran would crank up its full atomic program once again should authorities ever judge that the remaining signatories of the 2015 pact were failing to uphold their end of the deal.&nbsp;

Iranian authorities showcased what they said were 114 advances in their domestic nuclear technology industry achieved over the course of a year despite the United States decision to unilaterally withdraw from the 2015 nuclear deal.

Iranian authorities showcased what they said were 114 advances in their domestic nuclear technology industry achieved over the course of a year despite the United States decision to unilaterally withdraw from the 2015 nuclear deal. Tehran insists that its nuclear program is peaceful and falls well within the confines of the historic deal, which saw Iran limit its atomic program in exchange for a mild alleviation of international economic sanctions. This year, the Atomic Energy Organization of Iran's (AEOI) tally of achievements – which outnumbered the previous year by 31 – coincided with Iranian President Hassan Rouhani's announcement that he would authorize the installation of advanced IR-6 centrifuges. "The US policy of harassment cannot hinder our progress in the field of nuclear technology," Ali Akbar Saheli, the head of the AEOI, said in a ceremony this week. Notable advances in the field included new control systems to monitor nuclear processes; two nuclear medicines, including Yttrium-90, which is used in radiation therapy to treat cancer; a medical linear accelerator, which tailor x-rays to a patient's needs and the production of oxygen-18, which can be used in the medical industry in things like positron-emission tomography (PET scans). Speaking to Efe, Ali Asghar Zarean, Salehi's special advisor, said it had taken four years of investigation to be able to produce oxygen-18, which could now be commercialized. "Production capacity is around 100 kilograms (220 pounds) a year. We are in the first stage producing about 50 kilos but our annual domestic consumption is very few kilos, for that reason we're moving towards exportation. Iran was also ready to export its centrifuges, he said. According to Zarean, the AEOI has managed to domestically design and produce "whatever kind" of centrifuge for use in various industries, like medicine. Iran was forced to produce the machines domestically because of sanctions. This week a network of 20 IR-6 centrifuges was installed at the Natanz nuclear plant in central Iran. Each IR-6 centrifuge is eight times as powerful than the more primitive IR-1 designs, according to Zarean. Rouhani used this achievement to level a warning at the US. "If you were scared about the out IR-1 centrifuges in the past, you should know now that we are launching a network of 20 IR-6 models and that, if you keep up the pressure, we will unveil a network of IR-8 centrifuges in the near future," he said. The use of IR-8 centrifuges in Iran is prohibited by the 2015 nuclear deal. The accord was signed by Iran and the five permanent members of the United Nations Security Council (China, France, Russia, the United Kingdom, the United States) plus Germany. However, US President Donald Trump's decision to pull out of the framework and to reimpose – and, indeed strengthen – sanctions on Iran has left the deal on shaky ground. Trump's administration said the deal would only delay Iran's acquisition of nuclear weapons, despite the fact that the International Atomic Energy Agency has confirmed Iran's compliance to with the accord 14 times. The nuclear deal meant Iran had to dismantle or remodel certain atomic plants and temporary limit investigations that used nuclear material or technology, such as its uranium enrichment program. Salehi said all of Iran's achievements in 2018 were in line with the IAEA guidelines. Zarean warned, however, that Iran would crank up its full atomic program once again should authorities ever judge that the remaining signatories of the 2015 pact were failing to uphold their end of the deal.

Iran shows off nuclear advances despite US sanctions; insists its nuclear program is peaceful

North Korea has replaced its long-serving head of state with a close aide to <a href="https://www.wionews.com/world/kim-jong-un-is-open-to-third-trump-summit-north-korean-state-media-209985">leader Kim Jong Un</a>, promoting a man who was placed on a US sanctions list last year for alleged human rights abuses, state media said Friday.

The move came as part of a top-ranking reshuffle that analysts said further cemented Kim's already unshakeable grip on power.

Kim also acquired a new title, and now becomes "the supreme representative of all the Korean people" -- a newly-created role that observers say makes him more like a modern national leader, on a par with other country's presidents and prime ministers.

Kim Yong Nam, the now-91-year-old who held the position of the North's head of state -- an almost entirely ceremonial role -- for almost 20 years, was replaced by Choe Ryong Hae, the state-run KCNA said.

As the new president of the Supreme People's Assembly, Choe is technically head of state, although real power in North Korea is wielded by Kim and his immediate family.

The reshuffle comes at a time of heightened diplomatic activity that has seen Kim Jong Un hold landmark summits with the leaders of the US, China and South Korea.

Born in 1950, Choe is considered Kim Jong Un's right-hand man -- frequently referred to as the regime's "virtual number two official", having been key to the party's hierarchy since the 1980s.

Some reports have even suggested that one of Choe's sons is married to Kim Jong Un's powerful sister, Kim Yo Jong.

Choe is also one of the three North Korean officials placed under sanctions by the US last year over human rights abuse allegations.

Analysts said, however, the existing structures on Choe will have little impact on his future diplomatic endeavours, as long as its nuclear dialogue with the US continues.

"Kim Yong Chol, the North's top nuclear negotiator, also has been sanctioned by Washington since 2010," Ahn Chan-il, the president of the World Institute for North Korea Studies in Seoul, told AFP.

"But he visited Washington without a problem earlier this year. Washington will always make exceptions -- as long as Pyongyang has something to offer."

New title

Kim's new job adds to a growing list of titles he has accrued since he took power after the 2011 death of his father.

Analysts say it may also indicate a change in the country's constitution that concentrates more authority in the young leader.

"If Pyongyang indeed revised its constitution, then it just means Kim Jong Un now has more power than ever," said analyst Ahn.

"If that's the case, Kim will be the one who will be officially representing Pyongyang both at home and abroad".

Unlike his father, Kim Jong-Il, the young Kim has increasingly greeted foreign heads of state and visiting dignitaries, performing the functions of a modern head of state.

Jeong Young-tae, an analyst at the Institute of North Korean Studies in Seoul, says the new title is part of Pyongyang's efforts to "secularise" Kim and his power.&nbsp;

"Kim Jong Un wants to re-brand North Korea as a 'normal' socialist country in the world stage," he told AFP.&nbsp;

"The new title 'representative' is a break from some of his previous titles that are redolent of a religious cult."

North Korea has replaced its long-serving head of state with a close aide to leader Kim Jong Un, promoting a man who was placed on a US sanctions list last year for alleged human rights abuses, state media said Friday.

North Korea has replaced its long-serving head of state with a close aide to leader Kim Jong Un, promoting a man who was placed on a US sanctions list last year for alleged human rights abuses, state media said Friday. The move came as part of a top-ranking reshuffle that analysts said further cemented Kim's already unshakeable grip on power. Kim also acquired a new title, and now becomes "the supreme representative of all the Korean people" -- a newly-created role that observers say makes him more like a modern national leader, on a par with other country's presidents and prime ministers. Kim Yong Nam, the now-91-year-old who held the position of the North's head of state -- an almost entirely ceremonial role -- for almost 20 years, was replaced by Choe Ryong Hae, the state-run KCNA said. As the new president of the Supreme People's Assembly, Choe is technically head of state, although real power in North Korea is wielded by Kim and his immediate family. The reshuffle comes at a time of heightened diplomatic activity that has seen Kim Jong Un hold landmark summits with the leaders of the US, China and South Korea. Born in 1950, Choe is considered Kim Jong Un's right-hand man -- frequently referred to as the regime's "virtual number two official", having been key to the party's hierarchy since the 1980s. Some reports have even suggested that one of Choe's sons is married to Kim Jong Un's powerful sister, Kim Yo Jong. Choe is also one of the three North Korean officials placed under sanctions by the US last year over human rights abuse allegations. Analysts said, however, the existing structures on Choe will have little impact on his future diplomatic endeavours, as long as its nuclear dialogue with the US continues. "Kim Yong Chol, the North's top nuclear negotiator, also has been sanctioned by Washington since 2010," Ahn Chan-il, the president of the World Institute for North Korea Studies in Seoul, told AFP. "But he visited Washington without a problem earlier this year. Washington will always make exceptions -- as long as Pyongyang has something to offer." New title Kim's new job adds to a growing list of titles he has accrued since he took power after the 2011 death of his father. Analysts say it may also indicate a change in the country's constitution that concentrates more authority in the young leader. "If Pyongyang indeed revised its constitution, then it just means Kim Jong Un now has more power than ever," said analyst Ahn. "If that's the case, Kim will be the one who will be officially representing Pyongyang both at home and abroad". Unlike his father, Kim Jong-Il, the young Kim has increasingly greeted foreign heads of state and visiting dignitaries, performing the functions of a modern head of state. Jeong Young-tae, an analyst at the Institute of North Korean Studies in Seoul, says the new title is part of Pyongyang's efforts to "secularise" Kim and his power. "Kim Jong Un wants to re-brand North Korea as a 'normal' socialist country in the world stage," he told AFP. "The new title 'representative' is a break from some of his previous titles that are redolent of a religious cult."

Kim Jon Un gains more power in North Korea leadership shuffle

North Korea reversed a decision to withdraw its staff from an inter-Korean liaison office by sending some back to work on Monday, South Korea said, in a turnaround that came after U.S. President Donald Trump opted not to impose extra sanctions on the North.

On Friday, North Korea had said it was quitting the office, just hours after the United States imposed the first new sanctions on the North since the second U.S.-North Korea summit broke down last month.

The liaison office in Kaesong, North Korea, was opened in September and had been one of the key developments made during the detente between North Korea and South Korea in the past year.

The withdrawal of North Korean staff had been seen as a setback for South Korean President Moon Jae-in's attempts to engage with Pyongyang.

However, Trump on Friday said he has decided against imposing new large-scale sanctions on North Korea, a move that experts said could be an effort to defuse tensions or signalling that the "maximum pressure" sanctions campaign on North Korea was not going to get any stronger.

"Some of North Korean staff members are working at the liaison office" on Monday, the South's Unification Ministry said in a statement.

The two sides held a consultation at the liaison office on Monday and will continue to operate the office as usual, after North Korean staff members told the South "we came to do our shift as usual today," the ministry added.

Some four or five North Korean officials came to work at the office on Monday, about half the usual level of staffing, and none of the more senior officials were among those who came to work, South Korea's Yonhap news agency reported.

A convoy of dozens of South Korean officials had left for the liaison office earlier on Monday in a bid to maintain fragile gains in relations with Pyongyang.

Analysts reckoned the continued presence of North Koreans at the liaison office probably reflected Pyongyang's satisfaction over Trump's decision to hold off on the imposition of more sanctions.

They said the threatened withdrawal of staff appeared to have been calculated to pressure South Korea into persuading the United States to soft-pedal on sanctions.

North Korea reversed a decision to withdraw its staff from an inter-Korean liaison office by sending some back to work on Monday, South Korea said, in a turnaround that came after U.

North Korea reversed a decision to withdraw its staff from an inter-Korean liaison office by sending some back to work on Monday, South Korea said, in a turnaround that came after U.S. President Donald Trump opted not to impose extra sanctions on the North. On Friday, North Korea had said it was quitting the office, just hours after the United States imposed the first new sanctions on the North since the second U.S.-North Korea summit broke down last month. The liaison office in Kaesong, North Korea, was opened in September and had been one of the key developments made during the detente between North Korea and South Korea in the past year. The withdrawal of North Korean staff had been seen as a setback for South Korean President Moon Jae-in's attempts to engage with Pyongyang. However, Trump on Friday said he has decided against imposing new large-scale sanctions on North Korea, a move that experts said could be an effort to defuse tensions or signalling that the "maximum pressure" sanctions campaign on North Korea was not going to get any stronger. "Some of North Korean staff members are working at the liaison office" on Monday, the South's Unification Ministry said in a statement. The two sides held a consultation at the liaison office on Monday and will continue to operate the office as usual, after North Korean staff members told the South "we came to do our shift as usual today," the ministry added. Some four or five North Korean officials came to work at the office on Monday, about half the usual level of staffing, and none of the more senior officials were among those who came to work, South Korea's Yonhap news agency reported. A convoy of dozens of South Korean officials had left for the liaison office earlier on Monday in a bid to maintain fragile gains in relations with Pyongyang. Analysts reckoned the continued presence of North Koreans at the liaison office probably reflected Pyongyang's satisfaction over Trump's decision to hold off on the imposition of more sanctions. They said the threatened withdrawal of staff appeared to have been calculated to pressure South Korea into persuading the United States to soft-pedal on sanctions.

North Korean officials return to liaison office after pullout

The United States on Friday slapped sanctions on a key Venezuelan bank, BANDES and four affiliates over their support for <a href="https://www.wionews.com/world/maduro-creates-military-unit-to-protect-public-service-installations-203677">President Nicolas Maduro</a>.

The US move came just hours after Maduro's regime defied the United States and arrested a top aide of <a href="https://www.wionews.com/world/venezuela-guaido-envoy-asks-spain-to-press-for-tougher-eu-sanctions-on-maduro-204762">opposition leader Juan Guaido</a>, whom Washington recognizes as the crisis-hit country's interim leader.

Venezuelan Interior Minister Nestor Reverol accused the aide, Roberto Marrero, a 49-year-old lawyer who serves as Guaido's chief of staff, of leading a "terrorist cell" bent on attacking the government's leadership.

The companies sanctioned are BANDES, a state-controlled bank; Banco Bandes Uruguay; Banco Bicentenario del Pueblos; Banco Universal SA Banco de Venezuela; and Banco Prodem SA, of Bolivia.

"All property and interests in property of these entities, and of any entities that are owned, directly or indirectly, 50 per cent or more by this entity, that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC," the Treasury Department Office of Foreign Assets Control (OFAC) statement said.

"Maduro and his enablers have distorted the original purpose of the bank, which was founded to help the economic and social wellbeing of the Venezuelan people, as part of a desperate attempt to hold onto power," Treasury Secretary Steven Mnuchin said.

"Roberto Marrero and other political prisoners must be released&nbsp; 
immediately," Mnuchin stressed.

National Security Advisor John Bolton said on Twitter that "BANDES bank is to Venezuela's financial sector what PDVSA is to its oil sector. This action will severely affect any attempted currency movements by Maduro and his cronies moving forward. Do not test the resolve of this Administration."

The United States has repeatedly warned Maduro's government against arresting Guaido or his close aides, saying it would face unspecified repercussions.

US President Donald Trump reiterated this week he was considering "all options" at his disposal to see Maduro dislodged and Guaido installed in power, implying military action if he deemed it necessary.

US Vice President Mike Pence said in an op-ed in the Miami Herald Friday that "Nicolas Maduro must go."

A UN spokesman Thursday expressed "concern" at the arrest, urging "all actors in Venezuela to take immediate steps to lower tensions and refrain from any action that could lead to further escalation."&nbsp;

The United States on Friday slapped sanctions on a key Venezuelan bank, BANDES and four affiliates over their support for President Nicolas Maduro. The US move came just hours after Maduro's regime defied the United States and arrested a top aide of opposition leader Juan Guaido, whom Washington recognizes as the crisis-hit country's interim leader.

The United States on Friday slapped sanctions on a key Venezuelan bank, BANDES and four affiliates over their support for President Nicolas Maduro. The US move came just hours after Maduro's regime defied the United States and arrested a top aide of opposition leader Juan Guaido, whom Washington recognizes as the crisis-hit country's interim leader. Venezuelan Interior Minister Nestor Reverol accused the aide, Roberto Marrero, a 49-year-old lawyer who serves as Guaido's chief of staff, of leading a "terrorist cell" bent on attacking the government's leadership. The companies sanctioned are BANDES, a state-controlled bank; Banco Bandes Uruguay; Banco Bicentenario del Pueblos; Banco Universal SA Banco de Venezuela; and Banco Prodem SA, of Bolivia. "All property and interests in property of these entities, and of any entities that are owned, directly or indirectly, 50 per cent or more by this entity, that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC," the Treasury Department Office of Foreign Assets Control (OFAC) statement said. "Maduro and his enablers have distorted the original purpose of the bank, which was founded to help the economic and social wellbeing of the Venezuelan people, as part of a desperate attempt to hold onto power," Treasury Secretary Steven Mnuchin said. "Roberto Marrero and other political prisoners must be released immediately," Mnuchin stressed. National Security Advisor John Bolton said on Twitter that "BANDES bank is to Venezuela's financial sector what PDVSA is to its oil sector. This action will severely affect any attempted currency movements by Maduro and his cronies moving forward. Do not test the resolve of this Administration." The United States has repeatedly warned Maduro's government against arresting Guaido or his close aides, saying it would face unspecified repercussions. US President Donald Trump reiterated this week he was considering "all options" at his disposal to see Maduro dislodged and Guaido installed in power, implying military action if he deemed it necessary. US Vice President Mike Pence said in an op-ed in the Miami Herald Friday that "Nicolas Maduro must go." A UN spokesman Thursday expressed "concern" at the arrest, urging "all actors in Venezuela to take immediate steps to lower tensions and refrain from any action that could lead to further escalation."

US slaps sanctions on Venezuelan bank

<a href="https://www.wionews.com/india-news/any-attempt-by-pakistan-to-engage-with-hurriyat-will-not-be-taken-lightly-india-204880">Any attempt by Pakistan to engage with Hurriyat will not be taken lightly: India&nbsp;</a>

Indian External Affairs Minister spokesperson on Friday said that India has decided to not send any representative to Pakistan National Day reception in New Delhi after Islamabad extended invitation to Hurriyat leaders.

<a href="https://www.wionews.com/world/trumps-unfortunate-statement-on-golan-heights-brings-region-to-edge-of-new-crisis-erdogan-204870">Trump's unfortunate statement on Golan Heights brings region to edge of new crisis: Erdogan</a>

Turkish President Recep Tayyip Erdogan on Friday warned US President Donald Trump's pledge to recognise Israel's disputed annexation of the Golan Heights would risk a "new crisis".

<a href="https://www.wionews.com/world/china-protests-us-sanctions-on-shipping-firms-204871">Video: China protests US sanctions on shipping firms</a>

China has lodged a diplomatic protest with the United States after Washington sanctioned two Chinese shipping companies for doing business with North Korea, the foreign ministry said Friday.

<a href="https://www.wionews.com/india-news/india-one-of-worlds-fastest-growing-large-economies-imf-204859">India one of world's fastest-growing large economies: IMF</a>

India has been one of the fastest growing large economies in the world, the International Monetary Fund (IMF) has said, asserting that the country has carried out several key reforms in the last five years, but more needs to be done.

<a href="https://www.wionews.com/world/chinas-new-silk-road-gets-bumpy-as-xi-jinping-visits-italy-204877">China's new Silk Road gets bumpy as Xi Jinping visits Italy</a>

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project.

&nbsp;

Any attempt by Pakistan to engage with Hurriyat will not be taken lightly: India Indian External Affairs Minister spokesperson on Friday said that India has decided to not send any representative to Pakistan National Day reception in New Delhi after Islamabad extended invitation to Hurriyat leaders.

Any attempt by Pakistan to engage with Hurriyat will not be taken lightly: India Indian External Affairs Minister spokesperson on Friday said that India has decided to not send any representative to Pakistan National Day reception in New Delhi after Islamabad extended invitation to Hurriyat leaders. Trump's unfortunate statement on Golan Heights brings region to edge of new crisis: Erdogan Turkish President Recep Tayyip Erdogan on Friday warned US President Donald Trump's pledge to recognise Israel's disputed annexation of the Golan Heights would risk a "new crisis". Video: China protests US sanctions on shipping firms China has lodged a diplomatic protest with the United States after Washington sanctioned two Chinese shipping companies for doing business with North Korea, the foreign ministry said Friday. India one of world's fastest-growing large economies: IMF India has been one of the fastest growing large economies in the world, the International Monetary Fund (IMF) has said, asserting that the country has carried out several key reforms in the last five years, but more needs to be done. China's new Silk Road gets bumpy as Xi Jinping visits Italy Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project.

News brief: Big stories of the day

China has lodged a diplomatic protest with the United States after <a href="https://www.wionews.com/world/beijing-protests-us-sanctions-on-chinese-firms-over-north-korea-ties-33993">Washington sanctioned two Chinese shipping companies for doing business with North Korea</a>, the foreign ministry said Friday.

Beijing said it has consistently enforced all UN resolutions on North Korea after the US Treasury Department added two Chinese firms to a sanctions list on Thursday.

The US Treasury sanctioned Dalian Haibo International Freight Co. Ltd. for shipping cargo from the Chinese port of Dalian to North Korea on behalf of the Paeksol Trading Corporation, which in the past has sold metal and coal to earn money for Pyongyang.

It also blacklisted Liaoning Danxing International Forwarding Co., saying it had assisted North Korean officials based in Europe in procuring goods for the regime.

"We firmly oppose any country imposing unilateral sanctions and taking long-arm jurisdiction against any Chinese entity according to their own domestic laws," said foreign ministry spokesman Geng Shuang.

Any Chinese company or individual found to be violating sanctions will be "dealt with according to laws and regulations," Geng said.

"China has already made solemn representations to the US on this matter and urged the US to immediately stop its mistaken actions to prevent affecting bilateral cooperation on related issues," Geng told reporters.&nbsp;

Washington's move comes less than a month after North Korean leader Kim Jong Un met in Hanoi with President Donald Trump for a second summit that broke down in part over Pyongyang's demands for immediate sanctions relief.

Trump, while walking away from the talks, has been eager to reach a potentially landmark agreement on North Korea's nuclear weapons programme.

China has lodged a diplomatic protest with the United States after Washington sanctioned two Chinese shipping companies for doing business with North Korea, the foreign ministry said Friday.

China has lodged a diplomatic protest with the United States after Washington sanctioned two Chinese shipping companies for doing business with North Korea, the foreign ministry said Friday. Beijing said it has consistently enforced all UN resolutions on North Korea after the US Treasury Department added two Chinese firms to a sanctions list on Thursday. The US Treasury sanctioned Dalian Haibo International Freight Co. Ltd. for shipping cargo from the Chinese port of Dalian to North Korea on behalf of the Paeksol Trading Corporation, which in the past has sold metal and coal to earn money for Pyongyang. It also blacklisted Liaoning Danxing International Forwarding Co., saying it had assisted North Korean officials based in Europe in procuring goods for the regime. "We firmly oppose any country imposing unilateral sanctions and taking long-arm jurisdiction against any Chinese entity according to their own domestic laws," said foreign ministry spokesman Geng Shuang. Any Chinese company or individual found to be violating sanctions will be "dealt with according to laws and regulations," Geng said. "China has already made solemn representations to the US on this matter and urged the US to immediately stop its mistaken actions to prevent affecting bilateral cooperation on related issues," Geng told reporters. Washington's move comes less than a month after North Korean leader Kim Jong Un met in Hanoi with President Donald Trump for a second summit that broke down in part over Pyongyang's demands for immediate sanctions relief. Trump, while walking away from the talks, has been eager to reach a potentially landmark agreement on North Korea's nuclear weapons programme.

Video: China protests US sanctions on shipping firms

Reliance Industries is selling fuels to Venezuela from India and Europe to sidestep sanctions that bar US-based companies from dealing with state-run PDVSA, according to trading sources and Refinitiv Eikon data.

Reliance had been supplying alkylate, diluent naphtha and other fuel to Venezuela through its US-based subsidiary before Washington in late January imposed sanctions aimed at curbing the OPEC member's oil exports and ousting Socialist President Nicolas Maduro.

Also read:<a href="https://www.wionews.com/opinions/india-should-be-wary-of-the-us-sponsored-crisis-in-venezuela-194281"> India should be wary of the US-sponsored crisis in Venezuela</a>

At least three vessels chartered by the Indian conglomerate supplied refined products to Venezuela in recent weeks, and another vessel carrying gasoil is expected to set sail to the South American nation as well, according to the sources and data.

A Reliance spokesman wrote to Reuters in an email and said,&nbsp;"Reliance is and will remain in compliance with the sanctions and shall work with the concerned authorities."

He also said, "the volume of products supplied to and crude oil imported from Venezuela have not increased."

Reliance, a conglomerate controlled by billionaire Mukesh Ambani, has significant exposure to the financial system of the United States, where it operates subsidiaries linked to its oil and telecom businesses, among others.

The Indian market is crucial for Venezuela's economy because it has historically been the second-largest cash-paying customer for the OPEC country's crude, behind the United States.

Additional sanctions against Venezuela are possible in the future, as US President Donald Trump's administration has not yet tried to prevent companies based outside the United States from buying Venezuelan oil, a strategy known as "secondary sanctions."

Refinitiv Eikon trade data shows that Reliance shipped alkylate, a component for motor gasoline, to Venezuela on vessels Torm Mary and Torm Anabel in recent weeks. Those originated in India and passed through the Suez Canal.

It also shipped a gasoline cargo using tanker Torm Troilus to Venezuela and is preparing to send 35,000 tonnes of gasoil in a vessel called Vukovar to the South American nation.

"Reliance is also supplying some products from its Rotterdam storage," a source familiar with Reliance's operation said.

PDVSA did not reply to a request for comment.

In a statement last week, Reliance said its US unit has completely stopped all business with PDVSA. Reliance also halted all supply of diluents including heavy naphtha to Venezuela and does not plan to resume such sales until sanctions are lifted, according to the release.

Venezuela has overall imported some 160,000 barrels per day of fuel and diluents for its extra heavy oil output since the US measures were imposed, according to PDVSA and Definitive data, below levels prior to the sanctions but still enough to supply gas stations and power plants.

Reliance is among the biggest buyers of Venezuelan oil, although the company has recently said it has not increased crude purchases from Venezuela. In 2012, Reliance signed a 15-year deal to buy between 300,000 to 400,000 bpd of heavy crude from PDVSA.

Ship tracking data obtained by Reuters showed that Reliance's average purchases from Venezuela were less than 300,000 bpd in 2018 and in the first two months of this year.

Venezuela continues to supply at least some oil to India. A very large crude carrier (VLCC) is anchored off Venezuela's Jose port waiting to load oil bound for India, and at least six other vessels of the same size are underway to India's Sikka and Vadinar ports, according to the Refinitiv data.

PDVSA's second-largest customer in India is Nayara Energy, partially owned by Russian energy firm Rosneft, one of PDVSA's primary allies.

Reliance Industries is selling fuels to Venezuela from India and Europe to sidestep sanctions that bar US-based companies from dealing with state-run PDVSA, according to trading sources and Refinitiv Eikon data.

Reliance Industries is selling fuels to Venezuela from India and Europe to sidestep sanctions that bar US-based companies from dealing with state-run PDVSA, according to trading sources and Refinitiv Eikon data. Reliance had been supplying alkylate, diluent naphtha and other fuel to Venezuela through its US-based subsidiary before Washington in late January imposed sanctions aimed at curbing the OPEC member's oil exports and ousting Socialist President Nicolas Maduro. Also read: India should be wary of the US-sponsored crisis in Venezuela At least three vessels chartered by the Indian conglomerate supplied refined products to Venezuela in recent weeks, and another vessel carrying gasoil is expected to set sail to the South American nation as well, according to the sources and data. A Reliance spokesman wrote to Reuters in an email and said, "Reliance is and will remain in compliance with the sanctions and shall work with the concerned authorities." He also said, "the volume of products supplied to and crude oil imported from Venezuela have not increased." Reliance, a conglomerate controlled by billionaire Mukesh Ambani, has significant exposure to the financial system of the United States, where it operates subsidiaries linked to its oil and telecom businesses, among others. The Indian market is crucial for Venezuela's economy because it has historically been the second-largest cash-paying customer for the OPEC country's crude, behind the United States. Additional sanctions against Venezuela are possible in the future, as US President Donald Trump's administration has not yet tried to prevent companies based outside the United States from buying Venezuelan oil, a strategy known as "secondary sanctions." Refinitiv Eikon trade data shows that Reliance shipped alkylate, a component for motor gasoline, to Venezuela on vessels Torm Mary and Torm Anabel in recent weeks. Those originated in India and passed through the Suez Canal. It also shipped a gasoline cargo using tanker Torm Troilus to Venezuela and is preparing to send 35,000 tonnes of gasoil in a vessel called Vukovar to the South American nation. "Reliance is also supplying some products from its Rotterdam storage," a source familiar with Reliance's operation said. PDVSA did not reply to a request for comment. In a statement last week, Reliance said its US unit has completely stopped all business with PDVSA. Reliance also halted all supply of diluents including heavy naphtha to Venezuela and does not plan to resume such sales until sanctions are lifted, according to the release. Venezuela has overall imported some 160,000 barrels per day of fuel and diluents for its extra heavy oil output since the US measures were imposed, according to PDVSA and Definitive data, below levels prior to the sanctions but still enough to supply gas stations and power plants. Reliance is among the biggest buyers of Venezuelan oil, although the company has recently said it has not increased crude purchases from Venezuela. In 2012, Reliance signed a 15-year deal to buy between 300,000 to 400,000 bpd of heavy crude from PDVSA. Ship tracking data obtained by Reuters showed that Reliance's average purchases from Venezuela were less than 300,000 bpd in 2018 and in the first two months of this year. Venezuela continues to supply at least some oil to India. A very large crude carrier (VLCC) is anchored off Venezuela's Jose port waiting to load oil bound for India, and at least six other vessels of the same size are underway to India's Sikka and Vadinar ports, according to the Refinitiv data. PDVSA's second-largest customer in India is Nayara Energy, partially owned by Russian energy firm Rosneft, one of PDVSA's primary allies.

Reliance sends fuel from India, Europe to Venezuela to sidestep US sanctions

Venezuela Crisis: US to punish foreign entities funding Maduro regime

Iran is merging four military-linked banks and another financial institution with the country's oldest bank to boost efficiency and help stabilise the sector, the central bank said on Saturday, as the economy reels under US sanctions.

Many Iranian banks are under pressure because of years of poor management and economic difficulties, caused by decades of international sanctions and the reimposition of US sanctions last year.

The merger would create "a stable and more efficient single bank to provide better services to the families of the armed forces and the general public", the central bank said in a statement quoted by state news agency IRNA.

Ansar, Mehr Eqtesad, Qavamin, and Hekmat banks and the Kosar credit institution will be merged with state-run Bank Sepah, set up in 1925 by an army pension fund as Iran's first bank, the central bank statement said. It gave no further details of the merger or the institutions involved.

President Donald Trump reimposed US sanctions last May after pulling out of the 2015 Iran nuclear deal. The sanctions have shaken the economy and pushed the currency to record lows, disrupting foreign trade and helping boost annual inflation fourfold to nearly 40 per cent in November.

The weak currency and spiralling prices have been among complaints in sporadic street protests since late 2017.

Besides banks, Iran's armed forces and particularly the elite Revolutionary Guards control numerous companies.

After the Iran-Iraq war in the 1980s, the Guards became heavily involved in reconstruction, with interests subsequently expanding to take in a vast network of businesses ranging from oil and gas projects to construction and telecommunications.

Iran is merging four military-linked banks and another financial institution with the country's oldest bank to boost efficiency and help stabilise the sector, the central bank said on Saturday, as the economy reels under US sanctions.

Iran is merging four military-linked banks and another financial institution with the country's oldest bank to boost efficiency and help stabilise the sector, the central bank said on Saturday, as the economy reels under US sanctions. Many Iranian banks are under pressure because of years of poor management and economic difficulties, caused by decades of international sanctions and the reimposition of US sanctions last year. The merger would create "a stable and more efficient single bank to provide better services to the families of the armed forces and the general public", the central bank said in a statement quoted by state news agency IRNA. Ansar, Mehr Eqtesad, Qavamin, and Hekmat banks and the Kosar credit institution will be merged with state-run Bank Sepah, set up in 1925 by an army pension fund as Iran's first bank, the central bank statement said. It gave no further details of the merger or the institutions involved. President Donald Trump reimposed US sanctions last May after pulling out of the 2015 Iran nuclear deal. The sanctions have shaken the economy and pushed the currency to record lows, disrupting foreign trade and helping boost annual inflation fourfold to nearly 40 per cent in November. The weak currency and spiralling prices have been among complaints in sporadic street protests since late 2017. Besides banks, Iran's armed forces and particularly the elite Revolutionary Guards control numerous companies. After the Iran-Iraq war in the 1980s, the Guards became heavily involved in reconstruction, with interests subsequently expanding to take in a vast network of businesses ranging from oil and gas projects to construction and telecommunications.

Iran merging military-linked banks to stabilise sector

Iranian <a href="http://www.wionews.com/world/iran-to-launch-two-satellites-in-coming-days-190236">President Hassan Rouhani</a> said on Monday that Iran was determined to expand its military power and ballistic missile programme despite mounting pressure from hostile countries to curb Iran's defensive work, state TV reported.

"We have not asked and will not ask for permission to develop different types of ... missiles and will continue our path and our military power," Rouhani said in a speech at Tehran's Azadi (Freedom) square, where tens of thousands gathered to mark the 40th anniversary of Iran's Islamic revolution.

Rouhani also vowed Iran would defeat US&nbsp;sanctions, reimposed after President Donald Trump withdrew from Tehran's nuclear accord with world powers last year.

"The Iranian people have and will have some economic difficulties (due to the sanctions) but we will overcome the problems by helping each other," Rouhani said.

&nbsp;

Iranian President Hassan Rouhani said on Monday that Iran was determined to expand its military power and ballistic missile programme despite mounting pressure from hostile countries to curb Iran's defensive work, state TV reported.

Iranian President Hassan Rouhani said on Monday that Iran was determined to expand its military power and ballistic missile programme despite mounting pressure from hostile countries to curb Iran's defensive work, state TV reported. "We have not asked and will not ask for permission to develop different types of ... missiles and will continue our path and our military power," Rouhani said in a speech at Tehran's Azadi (Freedom) square, where tens of thousands gathered to mark the 40th anniversary of Iran's Islamic revolution. Rouhani also vowed Iran would defeat US sanctions, reimposed after President Donald Trump withdrew from Tehran's nuclear accord with world powers last year. "The Iranian people have and will have some economic difficulties (due to the sanctions) but we will overcome the problems by helping each other," Rouhani said.

Iran to continue expanding military might, missile work: President Hassan Rouhani

By Thomas Purcell

There appear to be two distinct responses to the current crisis in Venezuela. Either an authoritarian regime (led by Nicolás Maduro) is clinging to power against the wishes of popular forces arrayed around the new self-declared interim President Juan Guaidó. Or Venezuela is facing a coup backed by US imperialism with clear designs on the country’s huge oil reserves.

As with most complex situations, neither of these narratives fully captures what is going on. Indeed, for the majority of Venezuelans – thousands of whom have again taken to the streets across the country in peaceful demonstrations – ideological epithets pale in comparison to the economic impact they are experiencing in their daily lives.

Many face hunger, seeing family members flee the country (upwards of 3m have left the country) and rampant hyperinflation (predicted by the International Monetary Fund to reach an astronomical 10,000,000 per cent in 2019).

And make no mistake – despite the much publicised US sanctions, the economic crisis in Venezuela is homegrown. The government’s attempt to set prices for basic goods, maintain currency and exchange controls and regulate profits has decimated domestic production.

It has also strengthened black markets and encouraged the smuggling of everything from meat to nappies over the border with Colombia – a trade which has become an everyday survival strategy for thousands of Venezuelans.

Maduro’s government has been peddling the line of “economic war” for over four years. It even denies inflation actually exists, while printing more money to pay for increases in a minimum wage that doesn’t even cover the cost of a dozen eggs.

In a recent television interview, Maduro blamed the supposed economic war when asked about a rate of 3 per cent inflation per day in 2018. He also expressed a willingness to hold talks with his political rival Guaidó – while also somewhat ominously stating that 50,000 civilian militia members with access to weapons were on stand by to “defend the peace”.

Sanctions that have been in place since 2017 have exacerbated the economic crisis but were not successful in an attempt to force Maduro out of power. Yet, paradoxically, the very public US backing of Guaidó has increased the plausibility of Maduro’s claim – because with added sanctions now in place designed to restrict food supplies and oil equipment, that economic war has become very real.

The fact that this is a homegrown crisis is not lost on the people taking to the streets. So it can seem surprising that some angry Venezuelans don’t welcome internationally supported regime change. Still, others maintain steadfast supporters of “Chavismo” – the political movement named after the late president Hugo Chávez, Maduro’s predecessor. “Chavismo” still carries significant weight among activists anxious to defend “la patria” (the fatherland) from any external intervention.

Let’s take one salient example. The agricultural commune “El Maizal”, located between the states of Lara and Portuguesa, is perhaps the most successful worker-run cooperative still struggling for their vision of 21st-century socialism. While extremely critical of the “corruption, bureaucracy and clientelism” that pervades the government, the commune’s Twitter feed expresses the militant sentiment of a people prepared to rise up against the perceived threat of “Yankee imperialism”.

(Thomas Purcell is Senior Lecturer in International Political Economy, Leeds Beckett University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/venezuela-us-sanctions-hurt-but-the-economic-crisis-is-home-grown-111280">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

By Thomas Purcell There appear to be two distinct responses to the current crisis in Venezuela. Either an authoritarian regime (led by Nicolás Maduro) is clinging to power against the wishes of popular forces arrayed around the new self-declared interim President Juan Guaidó.

By Thomas Purcell There appear to be two distinct responses to the current crisis in Venezuela. Either an authoritarian regime (led by Nicolás Maduro) is clinging to power against the wishes of popular forces arrayed around the new self-declared interim President Juan Guaidó. Or Venezuela is facing a coup backed by US imperialism with clear designs on the country’s huge oil reserves. As with most complex situations, neither of these narratives fully captures what is going on. Indeed, for the majority of Venezuelans – thousands of whom have again taken to the streets across the country in peaceful demonstrations – ideological epithets pale in comparison to the economic impact they are experiencing in their daily lives. Many face hunger, seeing family members flee the country (upwards of 3m have left the country) and rampant hyperinflation (predicted by the International Monetary Fund to reach an astronomical 10,000,000 per cent in 2019). And make no mistake – despite the much publicised US sanctions, the economic crisis in Venezuela is homegrown. The government’s attempt to set prices for basic goods, maintain currency and exchange controls and regulate profits has decimated domestic production. It has also strengthened black markets and encouraged the smuggling of everything from meat to nappies over the border with Colombia – a trade which has become an everyday survival strategy for thousands of Venezuelans. Maduro’s government has been peddling the line of “economic war” for over four years. It even denies inflation actually exists, while printing more money to pay for increases in a minimum wage that doesn’t even cover the cost of a dozen eggs. In a recent television interview, Maduro blamed the supposed economic war when asked about a rate of 3 per cent inflation per day in 2018. He also expressed a willingness to hold talks with his political rival Guaidó – while also somewhat ominously stating that 50,000 civilian militia members with access to weapons were on stand by to “defend the peace”. Sanctions that have been in place since 2017 have exacerbated the economic crisis but were not successful in an attempt to force Maduro out of power. Yet, paradoxically, the very public US backing of Guaidó has increased the plausibility of Maduro’s claim – because with added sanctions now in place designed to restrict food supplies and oil equipment, that economic war has become very real. The fact that this is a homegrown crisis is not lost on the people taking to the streets. So it can seem surprising that some angry Venezuelans don’t welcome internationally supported regime change. Still, others maintain steadfast supporters of “Chavismo” – the political movement named after the late president Hugo Chávez, Maduro’s predecessor. “Chavismo” still carries significant weight among activists anxious to defend “la patria” (the fatherland) from any external intervention. Let’s take one salient example. The agricultural commune “El Maizal”, located between the states of Lara and Portuguesa, is perhaps the most successful worker-run cooperative still struggling for their vision of 21st-century socialism. While extremely critical of the “corruption, bureaucracy and clientelism” that pervades the government, the commune’s Twitter feed expresses the militant sentiment of a people prepared to rise up against the perceived threat of “Yankee imperialism”. (Thomas Purcell is Senior Lecturer in International Political Economy, Leeds Beckett University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Venezuela: US sanctions hurt, but the economic crisis is homegrown

There are times when one is constrained to divert one’s gaze from proximate neighbourhood towards distant regions-home to countries that are closely tied to our national interest.&nbsp;

Recent political upheaval in Venezuela deserves more serious attention than it has received. Many Indians are not even aware of the fact that India is the third largest importer of Venezuelan oil after the US and China. It has assumed even greater significance in our energy security calculations after the US has imposed sanctions on it in the wake of the dramatic political coup that has taken place in Caracas. Many Indians have much too hastily started celebrating thinking that the US sanctions will create a glut in the market and Venezuela will be forced to sell its oil at reduced prices and against rupees. The issue is far more complex.&nbsp;

First of all, there is no reason to believe that the US shall not threaten countries that continue to deal with Venezuela with secondary sanctions like they did in the case of Iran. This would leave India on the wrong foot, and once again at the mercy of POTUS Trump to avail of some respite.&nbsp;

We have in recent years allowed our ‘special’ strategic relationship with the US to dominate our relationship with countries we import oil from. Those who think that the cut imposed on oil imports from besieged Iran would be compensated by additional imports from Venezuela are not being realistic at all.&nbsp; 
 
Then there is the ‘Chinese Complication’. Venezuelans can’t be expected to give priority to India over their number two buyer. China is not going to be deterred by US bullying in pursuit of its energy security. Trump has declared a trade war against China but it has refused to blink. It is confident that the US companies and consumers feeling the pinch harder will persuade their government to reconsider its policy. (Ironically, support for Trump hasn’t registered a sharp decline so and there has been no explosive deterioration as some analysts had predicted.)

The arrest of the daughter of the founder of Huewei, herself one of the highest place company executives, in Canada enraged the Chinese enough to retaliate swiftly by arresting a former Canadian diplomat and announcing that it will not commute the death sentence awarded to a Canadian national into imprisonment for life.&nbsp;

India would do well to remember that the US shall continue to tread more cautiously where China is concerned. It realises that India, always willing to please the new found Super Power ‘Friend’ will do its bidding without overt arm twisting.&nbsp;

It is in the larger geopolitical context that we should consider recent Chinese statement that there should be no double standards in case of admission to new members to the Nuclear Fuel Suppliers Group. This cartel has 48 members and only China’s stubborn resistance has blocked India’s entry. China would like its longtime ally and protege to be treated at par with India. There should be no need to point out that Pakistan has acquired nuclear weapons through piracy flouting the non-proliferation regime while India has behaved as a responsible nuclear weapon state ever since its Peaceful Nuclear Explosion (Implosion) in Pokhran.

Our much hyped special relationship with the US rests on the cornerstone of agreement on peaceful uses of nuclear energy. Not much progress has been made since the UPA years towards the realisation of rapid economic development through clean energy. Neither new found friend (US) nor time tested ally (Russia) has exerted enough to remove the Chinese obstacle. This issue too is entwined with our energy security. 
 
Only China and Russia along with Cuba and a handful of socialist countries have condemned US recognition of what many see as usurper propped up by the US-driven compulsive to change regimes. How long are we going to let others choose or friends and foes is the question.

China is next door and Venezuela very far across oceans but both of them underline the same dilemma.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp; &nbsp;

There are times when one is constrained to divert one’s gaze from proximate neighbourhood towards distant regions-home to countries that are closely tied to our national interest.

There are times when one is constrained to divert one’s gaze from proximate neighbourhood towards distant regions-home to countries that are closely tied to our national interest. Recent political upheaval in Venezuela deserves more serious attention than it has received. Many Indians are not even aware of the fact that India is the third largest importer of Venezuelan oil after the US and China. It has assumed even greater significance in our energy security calculations after the US has imposed sanctions on it in the wake of the dramatic political coup that has taken place in Caracas. Many Indians have much too hastily started celebrating thinking that the US sanctions will create a glut in the market and Venezuela will be forced to sell its oil at reduced prices and against rupees. The issue is far more complex. First of all, there is no reason to believe that the US shall not threaten countries that continue to deal with Venezuela with secondary sanctions like they did in the case of Iran. This would leave India on the wrong foot, and once again at the mercy of POTUS Trump to avail of some respite. We have in recent years allowed our ‘special’ strategic relationship with the US to dominate our relationship with countries we import oil from. Those who think that the cut imposed on oil imports from besieged Iran would be compensated by additional imports from Venezuela are not being realistic at all. Then there is the ‘Chinese Complication’. Venezuelans can’t be expected to give priority to India over their number two buyer. China is not going to be deterred by US bullying in pursuit of its energy security. Trump has declared a trade war against China but it has refused to blink. It is confident that the US companies and consumers feeling the pinch harder will persuade their government to reconsider its policy. (Ironically, support for Trump hasn’t registered a sharp decline so and there has been no explosive deterioration as some analysts had predicted.) The arrest of the daughter of the founder of Huewei, herself one of the highest place company executives, in Canada enraged the Chinese enough to retaliate swiftly by arresting a former Canadian diplomat and announcing that it will not commute the death sentence awarded to a Canadian national into imprisonment for life. India would do well to remember that the US shall continue to tread more cautiously where China is concerned. It realises that India, always willing to please the new found Super Power ‘Friend’ will do its bidding without overt arm twisting. It is in the larger geopolitical context that we should consider recent Chinese statement that there should be no double standards in case of admission to new members to the Nuclear Fuel Suppliers Group. This cartel has 48 members and only China’s stubborn resistance has blocked India’s entry. China would like its longtime ally and protege to be treated at par with India. There should be no need to point out that Pakistan has acquired nuclear weapons through piracy flouting the non-proliferation regime while India has behaved as a responsible nuclear weapon state ever since its Peaceful Nuclear Explosion (Implosion) in Pokhran. Our much hyped special relationship with the US rests on the cornerstone of agreement on peaceful uses of nuclear energy. Not much progress has been made since the UPA years towards the realisation of rapid economic development through clean energy. Neither new found friend (US) nor time tested ally (Russia) has exerted enough to remove the Chinese obstacle. This issue too is entwined with our energy security. Only China and Russia along with Cuba and a handful of socialist countries have condemned US recognition of what many see as usurper propped up by the US-driven compulsive to change regimes. How long are we going to let others choose or friends and foes is the question. China is next door and Venezuela very far across oceans but both of them underline the same dilemma. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

India should be wary of the US-sponsored crisis in Venezuela

China has dramatically reduced its trade with Iran in line with US sanctions, raising questions whether Iran will remain committed to an international agreement that puts severe limits on its nuclear endeavours.

Reduced Chinese trade also suggests that Iran is likely to face increased obstacles as it seeks to blunt the impact of the harsh US sanctions imposed last year in a bid to force the Islamic republic to change its regional and defence policy.

China’s apparent willingness to accommodate the sanctions is remarkable given Beijing’s declared efforts to salvage the 2015 international agreement that curbed Iran’s nuclear program as well as its escalating trade and technology dispute with the United States.

Bourse &amp; Bazaar, a self-described media and business diplomacy company operated by Esfandyar Batmanghelidj, the founder of the Europe-Iran Forum, disclosed China’s reduced trade on almost the same day that the US Justice Department filed criminal charges against Chinese telecommunications giant Huawei and its chief financial officer Meng Wanzhou.

The Justice Department asserts that the company and Meng violated Iran sanctions in addition to stealing US robotic technology.

Based on a review of trade data from China’s General Customs Administration, Bourse &amp; Bazaar concluded that Chinese trade with Iran had dropped by 70 per cent in the first two months after the re-imposition of US sanctions.

In addition, China’s Bank of Kunlun, the vehicle China used in the past for business with Iran because it had no exposure to the United States and as a result was not vulnerable to US sanctions, said in December that it would restrict its business with Iran to humanitarian trade, effectively excluding all other transactions.

China replaced Europe as Iran’s main trading partner in 2012 at a time that Iran was under United Nations sanctions. Those sanctions were lifted with the conclusion of the nuclear agreement in 2015.

Bourse &amp; Bazaar said Chinese exports to Iran had dropped to $400 million in the period from October to December of last year compared to $1.2 billion in the same period in 2017.

“China may be abandoning the policy of sustaining trade with Iran in direct contravention of US sanctions, introducing both economic risks in regards to Iran’s continued industrialization and political risks in regards to Iran’s continued compliance with the JCPOA,” the report said, referring to the nuclear accord by the initials of its official designation, the Joint Comprehensive Plan of Action.

The report said that Iran relies on China for the import of badly needed industrial machinery and technology funded by its oil exports.

Iranian oil exports to China rebounded after the US gave China and seven other countries a six-month waiver but that did not revive Chinese exports, the report said.

Chinese compliance with US sanctions, at least in terms of trade could put to the test Iran’s declared commitment to the nuclear agreement in the wake of US President Donald J Trump’s withdrawal from the accord last May.

Iran has said its continued commitment would be determined by whether the accord remained in its interest, determined primarily by the ability and willingness of the other signatories to the agreement -- China, the European Union, Britain, France, Germany and Russia – to help it blunt the impact of the US sanctions.

The signatories have so far maintained that Iran has complied with the agreement even if the European Union recently sanctioned Iran’s intelligence ministry for allegedly targeting Iranian dissidents in the Netherlands, Denmark and France.

Germany subsequently banned Mahan Air, an Iranian airline sanctioned by the United States, from landing at its airports, asserting that Mahan Air had ferried fighters and weapons to Iranian-backed forces in Syria. Mahan Air operated four flights a week to Duesseldorf and Munich.

The signatories’ position appeared to be supported by a Worldwide Threat Assessment by the US intelligence community that in effect concluded that the Trump administration’s Iran policy had so far failed.

"We continue to assess that Iran is not currently undertaking the key nuclear weapons-development activities we judge necessary to produce a nuclear device,” Director of National Intelligence Daniel Coats told the Senate Intelligence Committee in a hearing on the 42-page report.

The report warned that US policy could empower Iranian hard-liners; had sparked at best only sporadic uncoordinated anti-government protests in the Islamic Republic; had failed to persuade Iran to change its regional and defense policy; and could prompt it to pursue more aggressive policies to counter perceived US, Saudi and Israeli attempts to destabilise the regime in Tehran.

Disclosure of Chinese willingness to comply to some degree with US sanctions as well as the European sanctions come in advance of a conference in Warsaw next month convened by the United States to discuss peace and security in the Middle East.

The conference, to which Iran has not been invited, is widely seen as a US effort to bolster support for its Iran policy. Russia and EU foreign policy chief Federica Mogherini have said that they would not be participating in the meeting.

An article in China’s state-owned Global Times discussing the Warsaw meeting under the headline, Poland is getting closer to the US, but should China be worried? Noted that Poland had arrested on espionage charges a former Chinese employee of Huawei and was considering banning the company.

The European Union, in a bid to blunt the impact of the US sanctions, is believed to be on the verge of launching a financial clearinghouse known as the Special Purpose Vehicle (SPV) that would allow European companies to continue to trade with Iran in accordance with EU law and could be open to other partners such as China.

The vehicle is being conceived as an alternative to the Brussels-based Society for the Worldwide Interbank Financial Telecommunication (SWIFT) international financial messaging system used by more than 10,000 banks worldwide.

The US has blacklisted tens of Iranian banks and pressured SWIFT into agreeing to steer clear of handling transactions of those banks.

The Bourse &amp; Bazaar report warned that continued Chinese refusal to buck US sanctions and ensure Iran has the necessary industrial machinery and technology to keep its economy running would fuel unemployment in the country that could be “devastating and destabilising.”

The report said Iran was more likely to withdraw from the nuclear agreement in a move that could significantly raise tensions in the Middle East as a result of Chinese rather than European compliance with US sanctions.

“If the nuclear deal collapses due to extraordinary economic pressures in Iran, China may be to blame,” the report said. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

China has dramatically reduced its trade with Iran in line with US sanctions, raising questions whether Iran will remain committed to an international agreement that puts severe limits on its nuclear endeavours.

China has dramatically reduced its trade with Iran in line with US sanctions, raising questions whether Iran will remain committed to an international agreement that puts severe limits on its nuclear endeavours. Reduced Chinese trade also suggests that Iran is likely to face increased obstacles as it seeks to blunt the impact of the harsh US sanctions imposed last year in a bid to force the Islamic republic to change its regional and defence policy. China’s apparent willingness to accommodate the sanctions is remarkable given Beijing’s declared efforts to salvage the 2015 international agreement that curbed Iran’s nuclear program as well as its escalating trade and technology dispute with the United States. Bourse & Bazaar, a self-described media and business diplomacy company operated by Esfandyar Batmanghelidj, the founder of the Europe-Iran Forum, disclosed China’s reduced trade on almost the same day that the US Justice Department filed criminal charges against Chinese telecommunications giant Huawei and its chief financial officer Meng Wanzhou. The Justice Department asserts that the company and Meng violated Iran sanctions in addition to stealing US robotic technology. Based on a review of trade data from China’s General Customs Administration, Bourse & Bazaar concluded that Chinese trade with Iran had dropped by 70 per cent in the first two months after the re-imposition of US sanctions. In addition, China’s Bank of Kunlun, the vehicle China used in the past for business with Iran because it had no exposure to the United States and as a result was not vulnerable to US sanctions, said in December that it would restrict its business with Iran to humanitarian trade, effectively excluding all other transactions. China replaced Europe as Iran’s main trading partner in 2012 at a time that Iran was under United Nations sanctions. Those sanctions were lifted with the conclusion of the nuclear agreement in 2015. Bourse & Bazaar said Chinese exports to Iran had dropped to $400 million in the period from October to December of last year compared to $1.2 billion in the same period in 2017. “China may be abandoning the policy of sustaining trade with Iran in direct contravention of US sanctions, introducing both economic risks in regards to Iran’s continued industrialization and political risks in regards to Iran’s continued compliance with the JCPOA,” the report said, referring to the nuclear accord by the initials of its official designation, the Joint Comprehensive Plan of Action. The report said that Iran relies on China for the import of badly needed industrial machinery and technology funded by its oil exports. Iranian oil exports to China rebounded after the US gave China and seven other countries a six-month waiver but that did not revive Chinese exports, the report said. Chinese compliance with US sanctions, at least in terms of trade could put to the test Iran’s declared commitment to the nuclear agreement in the wake of US President Donald J Trump’s withdrawal from the accord last May. Iran has said its continued commitment would be determined by whether the accord remained in its interest, determined primarily by the ability and willingness of the other signatories to the agreement -- China, the European Union, Britain, France, Germany and Russia – to help it blunt the impact of the US sanctions. The signatories have so far maintained that Iran has complied with the agreement even if the European Union recently sanctioned Iran’s intelligence ministry for allegedly targeting Iranian dissidents in the Netherlands, Denmark and France. Germany subsequently banned Mahan Air, an Iranian airline sanctioned by the United States, from landing at its airports, asserting that Mahan Air had ferried fighters and weapons to Iranian-backed forces in Syria. Mahan Air operated four flights a week to Duesseldorf and Munich. The signatories’ position appeared to be supported by a Worldwide Threat Assessment by the US intelligence community that in effect concluded that the Trump administration’s Iran policy had so far failed. "We continue to assess that Iran is not currently undertaking the key nuclear weapons-development activities we judge necessary to produce a nuclear device,” Director of National Intelligence Daniel Coats told the Senate Intelligence Committee in a hearing on the 42-page report. The report warned that US policy could empower Iranian hard-liners; had sparked at best only sporadic uncoordinated anti-government protests in the Islamic Republic; had failed to persuade Iran to change its regional and defense policy; and could prompt it to pursue more aggressive policies to counter perceived US, Saudi and Israeli attempts to destabilise the regime in Tehran. Disclosure of Chinese willingness to comply to some degree with US sanctions as well as the European sanctions come in advance of a conference in Warsaw next month convened by the United States to discuss peace and security in the Middle East. The conference, to which Iran has not been invited, is widely seen as a US effort to bolster support for its Iran policy. Russia and EU foreign policy chief Federica Mogherini have said that they would not be participating in the meeting. An article in China’s state-owned Global Times discussing the Warsaw meeting under the headline, Poland is getting closer to the US, but should China be worried? Noted that Poland had arrested on espionage charges a former Chinese employee of Huawei and was considering banning the company. The European Union, in a bid to blunt the impact of the US sanctions, is believed to be on the verge of launching a financial clearinghouse known as the Special Purpose Vehicle (SPV) that would allow European companies to continue to trade with Iran in accordance with EU law and could be open to other partners such as China. The vehicle is being conceived as an alternative to the Brussels-based Society for the Worldwide Interbank Financial Telecommunication (SWIFT) international financial messaging system used by more than 10,000 banks worldwide. The US has blacklisted tens of Iranian banks and pressured SWIFT into agreeing to steer clear of handling transactions of those banks. The Bourse & Bazaar report warned that continued Chinese refusal to buck US sanctions and ensure Iran has the necessary industrial machinery and technology to keep its economy running would fuel unemployment in the country that could be “devastating and destabilising.” The report said Iran was more likely to withdraw from the nuclear agreement in a move that could significantly raise tensions in the Middle East as a result of Chinese rather than European compliance with US sanctions. “If the nuclear deal collapses due to extraordinary economic pressures in Iran, China may be to blame,” the report said. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

In line with US sanctions, China dramatically reduces trade with Tehran

<a href="http://www.wionews.com/business-economy/oil-prices-jump-as-us-threatens-sanctions-against-venezuela-192607">Oil prices rose</a> for a third day on Thursday, pushed up by lower imports into the United States amid OPEC efforts to tighten the market, and as Venezuela struggles to keep up its crude exports after Washington imposed sanctions on the nation.

US West Texas Intermediate (WTI) crude futures were at $54.47 per barrel at 0758 GMT, up 24 cents, or 0.4 per cent, from their last settlement.

International Brent crude oil futures were up 36 cents, or 0.6 per cent, at $62.01 per barrel.

The price rise came after a report from the US Energy Information Administration (EIA) on Wednesday showed a drop in Saudi crude supply to the United States.

"Crude oil prices were stronger after signs emerged that OPEC cuts are impacting trade. EIA's weekly report showed that US imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels per day (bpd). This is the second lowest level in weekly data going back to 2010," ANZ bank said.

Saudi Arabia is the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-OPEC producers, including Russia, announced supply cuts late last year aimed at tightening the market and propping up prices.

US sanctions imposed on state-oil firm Petroleos de Venezuela SA (PDVSA) this week are also causing some supply disruptions.

Venezuela's oil inventories have started to build up at the country's ports and terminals as PDVSA is finding it cannot export crude at its usual rate due to US sanctions imposed earlier this week.

As of Wednesday, Venezuela had 25 tankers with nearly 18 million barrels of crude - representing about two weeks of the country's production - either waiting to load or expecting authorisation to set sail, shipping data showed.

Matt Stanley, a broker with Starfuels in Dubai, said the combination of US sanctions against oil producers Venezuela and Iran, the OPEC-led supply cuts, as well as hopes that the trade dispute between the United States and China could soon be resolved meant oil prices would likely rise further.

"There are just too many factors that can only cause the price to go one way and that is up," Stanley said.

Despite this, oil remains in ample supply, not least because of soaring US crude oil production, which jumped by more than 2 million bpd last year to a record 11.9 million bpd.

This shows in high US commercial crude oil stockpiles, which rose by 919,000 barrels in the week to January 25, to 445.94 million barrels, EIA data showed. Stockpiles are 6.6 per cent higher than a year ago.

Oil prices rose for a third day on Thursday, pushed up by lower imports into the United States amid OPEC efforts to tighten the market, and as Venezuela struggles to keep up its crude exports after Washington imposed sanctions on the nation.

Oil prices rose for a third day on Thursday, pushed up by lower imports into the United States amid OPEC efforts to tighten the market, and as Venezuela struggles to keep up its crude exports after Washington imposed sanctions on the nation. US West Texas Intermediate (WTI) crude futures were at $54.47 per barrel at 0758 GMT, up 24 cents, or 0.4 per cent, from their last settlement. International Brent crude oil futures were up 36 cents, or 0.6 per cent, at $62.01 per barrel. The price rise came after a report from the US Energy Information Administration (EIA) on Wednesday showed a drop in Saudi crude supply to the United States. "Crude oil prices were stronger after signs emerged that OPEC cuts are impacting trade. EIA's weekly report showed that US imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels per day (bpd). This is the second lowest level in weekly data going back to 2010," ANZ bank said. Saudi Arabia is the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-OPEC producers, including Russia, announced supply cuts late last year aimed at tightening the market and propping up prices. US sanctions imposed on state-oil firm Petroleos de Venezuela SA (PDVSA) this week are also causing some supply disruptions. Venezuela's oil inventories have started to build up at the country's ports and terminals as PDVSA is finding it cannot export crude at its usual rate due to US sanctions imposed earlier this week. As of Wednesday, Venezuela had 25 tankers with nearly 18 million barrels of crude - representing about two weeks of the country's production - either waiting to load or expecting authorisation to set sail, shipping data showed. Matt Stanley, a broker with Starfuels in Dubai, said the combination of US sanctions against oil producers Venezuela and Iran, the OPEC-led supply cuts, as well as hopes that the trade dispute between the United States and China could soon be resolved meant oil prices would likely rise further. "There are just too many factors that can only cause the price to go one way and that is up," Stanley said. Despite this, oil remains in ample supply, not least because of soaring US crude oil production, which jumped by more than 2 million bpd last year to a record 11.9 million bpd. This shows in high US commercial crude oil stockpiles, which rose by 919,000 barrels in the week to January 25, to 445.94 million barrels, EIA data showed. Stockpiles are 6.6 per cent higher than a year ago.

Oil prices rise on Saudi cuts to US; Venezuela struggles to keep up exports

<a href="http://www.wionews.com/americas/united-states-formally-charges-chinas-huawei-with-bank-fraud-stealing-trade-secrets-193545">US</a><a href="http://www.wionews.com/americas/united-states-formally-charges-chinas-huawei-with-bank-fraud-stealing-trade-secrets-193545"> charges China's Huawei with stealing trade secrets, violating Iran sanctions</a>

The United States on Monday charged China's Huawei Technologies Co Ltd, its chief financial officer and two affiliates with bank and wire fraud to violate sanctions against Iran in a case that has escalated tensions with Beijing.

<a href="http://www.wionews.com/americas/us-president-donald-trump-to-give-2019-state-of-the-union-address-on-february-5-193548">Pelosi says Trump can give State of Union speech on February 5</a>

US President Donald Trump and House Speaker Nancy Pelosi have agreed Trump will give the annual State of the Union address on February 5, following her postponement of the event from Jan. 29 because of the partial government shutdown, a spokesman for Pelosi said on Monday.

<a href="http://www.wionews.com/world/us-goes-after-venezuelas-oil-to-hit-maduro-193555">US</a><a href="http://www.wionews.com/world/us-goes-after-venezuelas-oil-to-hit-maduro-193555"> goes after Venezuela's oil to hit Maduro</a>

The United States announced sanctions against Venezuela's state oil company Monday in a coordinated effort with the main opposition leader to cripple embattled President Nicolas Maduro's power base.

<a href="http://www.wionews.com/americas/us-five-police-officers-shot-in-houston-two-in-critical-condition-193547">US: Five police officers shot in Houston</a>

Their conditions were not immediately disclosed. The site of the shooting was still an active crime scene, Houston police said in a message on Twitter, warning people to avoid the area.

<a href="http://www.wionews.com/india-news/after-sankhnaad-martial-tune-from-indian-classical-music-at-rajpath-more-indian-tunes-in-this-years-beating-the-retreat-193554">At Beating the Retreat ceremony today, Indian compositions set to </a><a href="http://www.wionews.com/india-news/after-sankhnaad-martial-tune-from-indian-classical-music-at-rajpath-more-indian-tunes-in-this-years-beating-the-retreat-193554">enthrall</a><a href="http://www.wionews.com/india-news/after-sankhnaad-martial-tune-from-indian-classical-music-at-rajpath-more-indian-tunes-in-this-years-beating-the-retreat-193554"> spectators</a>

Indian tunes will be the focus of today's "Beating the Retreat" ceremony that will take place at the Vijay Chowk at 5 pm. The ceremony that takes place on January 29 every year marks the culmination of 4 days long Republic day parade.

US charges China's Huawei with stealing trade secrets, violating Iran sanctions The United States on Monday charged China's Huawei Technologies Co Ltd, its chief financial officer and two affiliates with bank and wire fraud to violate sanctions against Iran in a case that has escalated tensions with Beijing.

US charges China's Huawei with stealing trade secrets, violating Iran sanctions The United States on Monday charged China's Huawei Technologies Co Ltd, its chief financial officer and two affiliates with bank and wire fraud to violate sanctions against Iran in a case that has escalated tensions with Beijing. Pelosi says Trump can give State of Union speech on February 5 US President Donald Trump and House Speaker Nancy Pelosi have agreed Trump will give the annual State of the Union address on February 5, following her postponement of the event from Jan. 29 because of the partial government shutdown, a spokesman for Pelosi said on Monday. US goes after Venezuela's oil to hit Maduro The United States announced sanctions against Venezuela's state oil company Monday in a coordinated effort with the main opposition leader to cripple embattled President Nicolas Maduro's power base. US: Five police officers shot in Houston Their conditions were not immediately disclosed. The site of the shooting was still an active crime scene, Houston police said in a message on Twitter, warning people to avoid the area. At Beating the Retreat ceremony today, Indian compositions set to enthrall spectators Indian tunes will be the focus of today's "Beating the Retreat" ceremony that will take place at the Vijay Chowk at 5 pm. The ceremony that takes place on January 29 every year marks the culmination of 4 days long Republic day parade.

<a href="http://www.wionews.com/india-news/peace-process-should-be-afghan-led-says-president-ghani-after-talks-with-taliban-in-qatar-193488">Peace process should be Afghan-led, says President Ghani after talks with Taliban in Qatar</a>

After Afghan president Ashraf Ghani appealed to the Taliban to "enter into serious talks" with the government during talks in Qatar with sources informing WION that a package deal is expected.

<a href="http://www.wionews.com/world/will-be-creating-independent-european-financial-institution-to-trade-with-iran-france-193461">Will be creating independent European financial institution to trade with Iran: France</a>

France's finance minister said that a European-backed system to facilitate non-dollar trade with Iran and circumvent US sanctions should be established in the coming days.

<a href="http://www.wionews.com/world/ex-starbucks-ceo-howard-schultz-aims-to-oust-trump-in-2020-193437">Ex-Starbucks CEO Howard Schultz may fight Trump in 2020 elections: Report</a>

Billionaire former Starbucks CEO Howard Schultz said in a TV interview that he is looking into running against Donald Trump in 2020 as an independent presidential candidate.

<a href="http://www.wionews.com/sports/controversy-can-help-hardik-pandya-scale-new-heights-in-career-virat-kohli-193476">Controversy can help Hardik Pandya scale new heights in career: Virat Kohli</a>

India captain Virat Kohli on Monday hoped all-rounder Hardik Pandya will come out a "better cricketer" and scale new heights after making a promising return from the suspension that followed his sexist remarks on a TV show.&nbsp;

<a href="http://www.wionews.com/world/watch-man-picks-painting-from-museum-in-daylight-robbery-in-russia-193473">Watch: Man picks painting from museum in daylight robbery in Russia</a>

Russian police said they had detained a suspect after a painting was stolen from a Moscow gallery on Sunday, when the thief strolled unchallenged past visitors who mistook him for an employee.

Peace process should be Afghan-led, says President Ghani after talks with Taliban in Qatar After Afghan president Ashraf Ghani appealed to the Taliban to "enter into serious talks" with the government during talks in Qatar with sources informing WION that a package deal is expected.

Peace process should be Afghan-led, says President Ghani after talks with Taliban in Qatar After Afghan president Ashraf Ghani appealed to the Taliban to "enter into serious talks" with the government during talks in Qatar with sources informing WION that a package deal is expected. Will be creating independent European financial institution to trade with Iran: France France's finance minister said that a European-backed system to facilitate non-dollar trade with Iran and circumvent US sanctions should be established in the coming days. Ex-Starbucks CEO Howard Schultz may fight Trump in 2020 elections: Report Billionaire former Starbucks CEO Howard Schultz said in a TV interview that he is looking into running against Donald Trump in 2020 as an independent presidential candidate. Controversy can help Hardik Pandya scale new heights in career: Virat Kohli India captain Virat Kohli on Monday hoped all-rounder Hardik Pandya will come out a "better cricketer" and scale new heights after making a promising return from the suspension that followed his sexist remarks on a TV show. Watch: Man picks painting from museum in daylight robbery in Russia Russian police said they had detained a suspect after a painting was stolen from a Moscow gallery on Sunday, when the thief strolled unchallenged past visitors who mistook him for an employee.

Oil rose on Thursday, shaking off persistent concern about the outlook for demand after the <a href="https://www.google.com/url?q=http://www.wionews.com/world/we-cant-pay-informants-fbi-on-us-government-shutdown-192096&amp;sa=U&amp;ved=0ahUKEwj-0aKeq4bgAhWRiXAKHQB_DtcQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw11jEab_5MBVmk6hxRnheGA">US government</a> said it could impose sanctions on OPEC member Venezuela's crude exports.

Venezuela's opposition leader Juan Guaido declared himself interim president on Wednesday, winning backing from Washington and parts of Latin America and promoting socialist Nicolas Maduro, the country's leader since 2013, to break relations with the United States.

Economic crisis under Maduro has decimated Venezuela's oil industry, cutting its crude output to near 70-year lows around 1.2 million barrels per day (bpd), from double that three years ago.

Venezuela's oil is predominantly heavy crude, which requires extensive refining, and as such, is frequently blended with lighter crudes to give refiners higher-value products.

With Iran already crippled by US sanctions on its oil, a further drop in Venezuelan exports could squeeze <a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/china-us-trade-tension-a-major-risk-to-global-growth-imf-chief-192497&amp;sa=U&amp;ved=0ahUKEwi8vuy8q4bgAhUFSI8KHRHKCJkQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw0abGL-IjwT_jDuySfhx-D_">global </a>supply and rapidly push up prices.

"The potential is that the US is starting to put things in motion and the risk for an acceleration in the decline in production from Venezuela is increasing," Petromatrix strategist Olivier Jakob said.

"For now, it's not being fully priced in, but I think this does provide a new upside risk for the market."

Brent crude futures were up 10 cents at $61.24 a barrel by 1010 GMT, having touched a session high of $61.38. West Texas Intermediate (WTI) futures were up 14 cents at $52.76 a barrel.

Neither the Brent nor the WTI contract, both of which are backed by light, sweet crude, are linked directly to Venezuelan oil. But evidence of the concern around the supply of heavy crudes is apparent in the US physical market, where prices for Mars Sour, a medium crude, shot to their highest since early 2011 this week.

Physical markets around the world have already seen a sharp rise in prices for oil cargoes thanks in part to reduced supply from the Organization of the Petroleum Exporting Countries.

OPEC, together with non-members such as Russia, Kazakhstan, and Oman, agreed in December to cut crude output this year by 1.2 million bpd to avoid a build-up in unused inventories, particularly if the global economic outlook darkened.

Concern about the US trade war with China, as well as slower European growth and more fragile emerging economies, has undermined confidence in the oil market in the last few months.

The International Monetary Fund this week cut its forecasts for growth in 2019 and 2020.

Oil rose on Thursday, shaking off persistent concern about the outlook for demand after the US government said it could impose sanctions on OPEC member Venezuela's crude exports.

Oil rose on Thursday, shaking off persistent concern about the outlook for demand after the US government said it could impose sanctions on OPEC member Venezuela's crude exports. Venezuela's opposition leader Juan Guaido declared himself interim president on Wednesday, winning backing from Washington and parts of Latin America and promoting socialist Nicolas Maduro, the country's leader since 2013, to break relations with the United States. Economic crisis under Maduro has decimated Venezuela's oil industry, cutting its crude output to near 70-year lows around 1.2 million barrels per day (bpd), from double that three years ago. Venezuela's oil is predominantly heavy crude, which requires extensive refining, and as such, is frequently blended with lighter crudes to give refiners higher-value products. With Iran already crippled by US sanctions on its oil, a further drop in Venezuelan exports could squeeze global supply and rapidly push up prices. "The potential is that the US is starting to put things in motion and the risk for an acceleration in the decline in production from Venezuela is increasing," Petromatrix strategist Olivier Jakob said. "For now, it's not being fully priced in, but I think this does provide a new upside risk for the market." Brent crude futures were up 10 cents at $61.24 a barrel by 1010 GMT, having touched a session high of $61.38. West Texas Intermediate (WTI) futures were up 14 cents at $52.76 a barrel. Neither the Brent nor the WTI contract, both of which are backed by light, sweet crude, are linked directly to Venezuelan oil. But evidence of the concern around the supply of heavy crudes is apparent in the US physical market, where prices for Mars Sour, a medium crude, shot to their highest since early 2011 this week. Physical markets around the world have already seen a sharp rise in prices for oil cargoes thanks in part to reduced supply from the Organization of the Petroleum Exporting Countries. OPEC, together with non-members such as Russia, Kazakhstan, and Oman, agreed in December to cut crude output this year by 1.2 million bpd to avoid a build-up in unused inventories, particularly if the global economic outlook darkened. Concern about the US trade war with China, as well as slower European growth and more fragile emerging economies, has undermined confidence in the oil market in the last few months. The International Monetary Fund this week cut its forecasts for growth in 2019 and 2020.

Oil rises after US threat of sanctions on Venezuela crude

Two ships ablaze in the Black Sea region, <a href="http://www.wionews.com/india-news/ten-sailors-dead-after-2-ships-catch-fire-near-crimea-indian-crewmen-may-be-among-casualties-191893">leaving at least 10 crew dead</a>, caught fire while transferring fuel mid-sea after one vessel was barred from using its usual port in southern Russia due to U.S. sanctions risk, two sources told Reuters.

The vessels, which caught fire on Monday, have the same names as two gas-transporting tankers, the Maestro and Venice, which were included on a U.S. sanctions advisory note last year for delivering fuel to Syria.

The U.S. Treasury note, published in November, advised that any dealings with these or other vessels involved in transporting fuel to Syria could result in sanctions.

Also read: <a href="http://www.wionews.com/india-news/most-indian-crew-safe-in-russian-ship-wreck-claims-dgs-192106">Most Indian sailors safe, says Directorate General of Shipping officials</a>

The Maestro was subsequently barred from using Temryuk port in southern Russia by the owners of its only gas terminal, Maktren-Nafta, two industry sources said, where it had previously loaded liquefied petroleum gas of Russian and Kazakh origin for export to the Middle East.

The Russian company Maktren-Nafta could not be reached for comment.

Vessels can resort to ship-to-ship transfers of fuel -- a risky manoeuvre especially if they are transferring flammable fuel -- if they do not have access to a port for loading.

Temryuk port did not immediately respond to a request for comment. Reuters was unable to reach the owners of the vessels.

Russia's Transport Ministry said the two ships caught fire on Monday while loading gas ship-to-ship mid-sea, during stormy conditions.

Russia permits loading of gas at just three locations in the region - all on-land ports - a source in the ministry said.

"All ship-to-ship transfers, especially of such dangerous cargo, moreover during stormy weather and in the winter, raises big questions," the source said.

The ministry source said they did not know whether the tanker had been barred from the port, but added that doing so was within the rights of the owners of the gas loading terminal.

ROUGH SEA

Ten sailors out of a combined crew of 32 were confirmed dead by the ministry's maritime unit on Tuesday. A further 10 remain missing, presumed dead, while 12 were rescued, it added.

The crew was made up of 16 Turkish citizens and 15 from India, the ministry said.

The ships are still on fire and no attempts are being made to put out the blaze due to rough sea conditions, a ministry spokesman said.

Refinitiv data showed Milano Shipping as the owner of the Venice, and Maestro Shipping of the Maestro. The Venice was recently renamed as the Candy, one industry source said.

But two traders, separate to the industry sources, told Reuters that both vessels were ultimately owned by one Turkish company, Milenyum Denizcilik Gemi.

Milenyum was placed on the U.S. sanctions list in 2015 for arranging the shipment of liquefied petroleum gas and gasoil to Syrian government controlled areas.

Phone numbers for Milenyum and Milano Shipping, listed online, were not answered.

SANCTIONS LIST

On Nov. 20 last year, the U.S. Treasury Department added nine Russian and Iranian individuals and companies on its sanctions list for participating in the shipment of petroleum to Syria.

It also issued an advisory note warning of the potential sanctions risk for any entities involved in such shipments which listed 35 ships, including the Maestro and Venice, as having delivered oil to Syria between 2016 and 2018.

Reuters reported in December that both the Maestro and Venice continued operations after the U.S. announcement, and regularly entered Temryuk port, according to Refinitiv data.

After the Reuters report, the Maestro was barred from using the port's gas terminal by its owners, and thereby denied access to the port, the two industry sources said.

But the Venice - now known as Candy - continued to dock at Temryuk, Refinitiv data showed.

"There's every indication that some black scheme was going on," one of the industry sources said.

"Why else would (the Venice) load up with gas and then immediately transfer it onto another tanker?" the source said, adding that the Venice was likely to have been permitted access to the port as it had changed its name to Candy since the U.S. sanctions note.

Since the U.S. announcement, the Venice/Candy has travelled to near the Lebanese and Syrian coastline on three occasions, Refinitiv data showed on Tuesday, while the Maestro has made the same journey once.

The data does not show at which port the vessels finally docked. They appear to turn around before reaching the coast.

Vessels wishing to conceal their location have been known to switch off their transponders and "go dark".

Though ships are allowed to switch off their signalling systems in certain circumstances, for example for reasons of security, such instances are relatively limited and rare, Richard Meade, managing editor of Lloyd's List Intelligence in London said.

"Both vessels weren't showing up as live... despite being fairly close to land-based receivers," Meade said. "This certainly would raise red flags in terms of anybody looking at the accident or criminal investigation."

The Maestro's signalling system last reported its location on Saturday, when it was located off the coast of Turkey in the Black Sea, according to Refinitiv data.

But on Monday, it was near the Kerch Strait, a body of water between Russian-annexed Crimea and southern Russia, which connects the Azov Sea to the Black Sea.

There, it met the Venice, which had left Temryuk port on Sunday morning with a fresh cargo of liquefied petroleum gas, an industry source said.

After attempting to transfer the highly flammable fuel, both ships were on fire.

Two ships ablaze in the Black Sea region, leaving at least 10 crew dead, caught fire while transferring fuel mid-sea after one vessel was barred from using its usual port in southern Russia due to U.

Two ships ablaze in the Black Sea region, leaving at least 10 crew dead, caught fire while transferring fuel mid-sea after one vessel was barred from using its usual port in southern Russia due to U.S. sanctions risk, two sources told Reuters. The vessels, which caught fire on Monday, have the same names as two gas-transporting tankers, the Maestro and Venice, which were included on a U.S. sanctions advisory note last year for delivering fuel to Syria. The U.S. Treasury note, published in November, advised that any dealings with these or other vessels involved in transporting fuel to Syria could result in sanctions. Also read: Most Indian sailors safe, says Directorate General of Shipping officials The Maestro was subsequently barred from using Temryuk port in southern Russia by the owners of its only gas terminal, Maktren-Nafta, two industry sources said, where it had previously loaded liquefied petroleum gas of Russian and Kazakh origin for export to the Middle East. The Russian company Maktren-Nafta could not be reached for comment. Vessels can resort to ship-to-ship transfers of fuel -- a risky manoeuvre especially if they are transferring flammable fuel -- if they do not have access to a port for loading. Temryuk port did not immediately respond to a request for comment. Reuters was unable to reach the owners of the vessels. Russia's Transport Ministry said the two ships caught fire on Monday while loading gas ship-to-ship mid-sea, during stormy conditions. Russia permits loading of gas at just three locations in the region - all on-land ports - a source in the ministry said. "All ship-to-ship transfers, especially of such dangerous cargo, moreover during stormy weather and in the winter, raises big questions," the source said. The ministry source said they did not know whether the tanker had been barred from the port, but added that doing so was within the rights of the owners of the gas loading terminal. ROUGH SEA Ten sailors out of a combined crew of 32 were confirmed dead by the ministry's maritime unit on Tuesday. A further 10 remain missing, presumed dead, while 12 were rescued, it added. The crew was made up of 16 Turkish citizens and 15 from India, the ministry said. The ships are still on fire and no attempts are being made to put out the blaze due to rough sea conditions, a ministry spokesman said. Refinitiv data showed Milano Shipping as the owner of the Venice, and Maestro Shipping of the Maestro. The Venice was recently renamed as the Candy, one industry source said. But two traders, separate to the industry sources, told Reuters that both vessels were ultimately owned by one Turkish company, Milenyum Denizcilik Gemi. Milenyum was placed on the U.S. sanctions list in 2015 for arranging the shipment of liquefied petroleum gas and gasoil to Syrian government controlled areas. Phone numbers for Milenyum and Milano Shipping, listed online, were not answered. SANCTIONS LIST On Nov. 20 last year, the U.S. Treasury Department added nine Russian and Iranian individuals and companies on its sanctions list for participating in the shipment of petroleum to Syria. It also issued an advisory note warning of the potential sanctions risk for any entities involved in such shipments which listed 35 ships, including the Maestro and Venice, as having delivered oil to Syria between 2016 and 2018. Reuters reported in December that both the Maestro and Venice continued operations after the U.S. announcement, and regularly entered Temryuk port, according to Refinitiv data. After the Reuters report, the Maestro was barred from using the port's gas terminal by its owners, and thereby denied access to the port, the two industry sources said. But the Venice - now known as Candy - continued to dock at Temryuk, Refinitiv data showed. "There's every indication that some black scheme was going on," one of the industry sources said. "Why else would (the Venice) load up with gas and then immediately transfer it onto another tanker?" the source said, adding that the Venice was likely to have been permitted access to the port as it had changed its name to Candy since the U.S. sanctions note. Since the U.S. announcement, the Venice/Candy has travelled to near the Lebanese and Syrian coastline on three occasions, Refinitiv data showed on Tuesday, while the Maestro has made the same journey once. The data does not show at which port the vessels finally docked. They appear to turn around before reaching the coast. Vessels wishing to conceal their location have been known to switch off their transponders and "go dark". Though ships are allowed to switch off their signalling systems in certain circumstances, for example for reasons of security, such instances are relatively limited and rare, Richard Meade, managing editor of Lloyd's List Intelligence in London said. "Both vessels weren't showing up as live... despite being fairly close to land-based receivers," Meade said. "This certainly would raise red flags in terms of anybody looking at the accident or criminal investigation." The Maestro's signalling system last reported its location on Saturday, when it was located off the coast of Turkey in the Black Sea, according to Refinitiv data. But on Monday, it was near the Kerch Strait, a body of water between Russian-annexed Crimea and southern Russia, which connects the Azov Sea to the Black Sea. There, it met the Venice, which had left Temryuk port on Sunday morning with a fresh cargo of liquefied petroleum gas, an industry source said. After attempting to transfer the highly flammable fuel, both ships were on fire.

One of 2 ships that caught fire in Crimea was turned away from Russia port over US sanctions

The US ambassador to Germany has warned of sanctions against firms linked to the Nord Stream 2 gas pipeline from Russia, the American embassy in Berlin confirmed Sunday.

A letter envoy Richard Grenell sent to several businesses "reminds that any company operating in the Russian energy export pipeline sector... is in danger under CAATSA of US sanctions," an embassy spokesman told AFP.

The Countering America's Adversaries Through Sanctions Act (CAATSA) adopted in 2017 targets Iran, Russia, and North Korea.

Close Donald Trump ally Grenell's letter "is not meant to be a threat, but a clear message of US policy," the spokesman said.

"The only thing that could be considered blackmail in this situation would be the Kremlin having leverage over future gas supplies," he said.

Construction has already begun on Nord Stream 2, set to double the capacity of an existing pipeline across the Baltic Sea.

Firms including Germany's Wintershall and Uniper, Dutch-British Shell, France's Engie and Austria's OMV are involved in the project.

Combined with the planned TurkStream pipeline across the Black Sea, Nord Stream 2 would do away with the need to transport natural gas to Europe via Ukraine — robbing the country of a factor shielding it from Russian aggression, Grenell said.

The two countries are in conflict over the eastern part of Ukraine and the annexation of the Crimean peninsula by Russia in 2014.

"Firms supporting the construction of the two pipelines are actively undermining the security of Ukraine and Europe," Grenell wrote.

Washington's fears about the pipeline are shared by a number of eastern European Union countries including Poland, and the European Parliament last month passed a resolution condemning the construction.

But German Chancellor Angela Merkel, backed by France and Austria, has so far insisted it is a "purely economic project" that will ensure cheaper, more reliable gas supply.

The veteran leader — a key player in Moscow-Kiev peace talks — says Ukrainian interests will be protected as some Russian gas will still be transported via the country once Nord Stream 2 is online.

German Foreign Minister Heiko Maas also weighed in on the transatlantic row last week, saying "European energy policy should be decided in Europe, not in the United States." 
&nbsp;

A letter envoy Richard Grenell sent to several businesses 'reminds that any company operating in the Russian energy export pipeline sector... is in danger under CAATSA of US sanctions,' an embassy spokesman said.

The US ambassador to Germany has warned of sanctions against firms linked to the Nord Stream 2 gas pipeline from Russia, the American embassy in Berlin confirmed Sunday. A letter envoy Richard Grenell sent to several businesses "reminds that any company operating in the Russian energy export pipeline sector... is in danger under CAATSA of US sanctions," an embassy spokesman told AFP. The Countering America's Adversaries Through Sanctions Act (CAATSA) adopted in 2017 targets Iran, Russia, and North Korea. Close Donald Trump ally Grenell's letter "is not meant to be a threat, but a clear message of US policy," the spokesman said. "The only thing that could be considered blackmail in this situation would be the Kremlin having leverage over future gas supplies," he said. Construction has already begun on Nord Stream 2, set to double the capacity of an existing pipeline across the Baltic Sea. Firms including Germany's Wintershall and Uniper, Dutch-British Shell, France's Engie and Austria's OMV are involved in the project. Combined with the planned TurkStream pipeline across the Black Sea, Nord Stream 2 would do away with the need to transport natural gas to Europe via Ukraine — robbing the country of a factor shielding it from Russian aggression, Grenell said. The two countries are in conflict over the eastern part of Ukraine and the annexation of the Crimean peninsula by Russia in 2014. "Firms supporting the construction of the two pipelines are actively undermining the security of Ukraine and Europe," Grenell wrote. Washington's fears about the pipeline are shared by a number of eastern European Union countries including Poland, and the European Parliament last month passed a resolution condemning the construction. But German Chancellor Angela Merkel, backed by France and Austria, has so far insisted it is a "purely economic project" that will ensure cheaper, more reliable gas supply. The veteran leader — a key player in Moscow-Kiev peace talks — says Ukrainian interests will be protected as some Russian gas will still be transported via the country once Nord Stream 2 is online. German Foreign Minister Heiko Maas also weighed in on the transatlantic row last week, saying "European energy policy should be decided in Europe, not in the United States."

US threatens sanctions over Russia-Germany gas pipeline

All countries that were granted waivers from the <a href="http://www.wionews.com/world/donald-trump-us-president-marks-another-year-of-controversies-185674">United States</a> to continue buying a certain amount of Iranian oil imports are complying with <a href="http://www.wionews.com/world/us-sanctions-wont-change-iran-policies-javad-zarif-184363">US sanctions</a>, a senior Iranian energy official said, noting that Tehran was hopeful to find new buyers.

The United States withdrew from a nuclear deal with Iran last year and snapped sanctions in place to choke Iran’s oil and banking industries, while temporarily allowing eight customers to keep buying crude from the Islamic Republic.

"China, India, Japan, South Korea and other countries that were granted waivers from America to import Iranian oil are not willing to buy even one barrel more from Iran," Amir Hossein Zamaninia, Iran’s deputy oil minister for trade and international affairs, was quoted as saying by the Oil Ministry's news agency SHANA.

However, without giving details, Zamaninia said: "Despite US pressures on Iranian oil market, the number of potential buyers of Iranian oil has significantly increased due to a competitive market, greed and pursuit of more profit."

The 180-day exemptions were also granted to Italy, Greece, Taiwan and Turkey.

Washington seeks to bring Iranian oil exports to zero in order to curb Tehran's missile and nuclear programmes and counter its growing military and political influence in the Middle East.

Iran has urged European countries, which are still committed to the nuclear deal, to oppose the sanctions by creating a financial mechanism that facilitates payments of Iranian oil sales.

Zamaninia said the mechanism, known as SPV (Special Purpose Vehicle for trade), would be "helpful but could not resolve the problems since US influence will affect any European action".

All countries that were granted waivers from the United States to continue buying a certain amount of Iranian oil imports are complying with US sanctions, a senior Iranian energy official said, noting that Tehran was hopeful to find new buyers.

All countries that were granted waivers from the United States to continue buying a certain amount of Iranian oil imports are complying with US sanctions, a senior Iranian energy official said, noting that Tehran was hopeful to find new buyers. The United States withdrew from a nuclear deal with Iran last year and snapped sanctions in place to choke Iran’s oil and banking industries, while temporarily allowing eight customers to keep buying crude from the Islamic Republic. "China, India, Japan, South Korea and other countries that were granted waivers from America to import Iranian oil are not willing to buy even one barrel more from Iran," Amir Hossein Zamaninia, Iran’s deputy oil minister for trade and international affairs, was quoted as saying by the Oil Ministry's news agency SHANA. However, without giving details, Zamaninia said: "Despite US pressures on Iranian oil market, the number of potential buyers of Iranian oil has significantly increased due to a competitive market, greed and pursuit of more profit." The 180-day exemptions were also granted to Italy, Greece, Taiwan and Turkey. Washington seeks to bring Iranian oil exports to zero in order to curb Tehran's missile and nuclear programmes and counter its growing military and political influence in the Middle East. Iran has urged European countries, which are still committed to the nuclear deal, to oppose the sanctions by creating a financial mechanism that facilitates payments of Iranian oil sales. Zamaninia said the mechanism, known as SPV (Special Purpose Vehicle for trade), would be "helpful but could not resolve the problems since US influence will affect any European action".

Iran says despite US sanctions, it has found new 'potential' oil buyers

India's finance ministry has exempted rupee payments made to the National Iranian Oil Co (NIOC) for crude oil imports from a steep withholding tax, according to a government order reviewed by Reuters.

The exemption, put in place December 28 but backdated to November 5, will allow Indian refiners to settle about $1.5 billion of outstanding payments to NIOC. Those have been building up since Tehran was put under stringent US sanctions in early November.

The two countries on November 2 signed a bilateral agreement to settle oil trades through an Indian government-owned bank, UCO Bank, in the Indian currency, which is not freely traded on international markets.&nbsp;

However, the income of a foreign company that is deposited in an Indian bank account is subject to a withholding tax of 40 per cent plus other levies, leading to a total take by the authorities of 42.5 per cent.

That made the agreement unworkable for Iran and led to the freeze in payments by the refiners until the exemption could be introduced.

Iran will be able to use the rupee funds for a range of expenses - including&nbsp;imports from India, the cost of its missions in the country, direct investment in Indian projects, and its financing of Iranian students in India, according to another government document reviewed by Reuters. It can also invest the funds in Indian government debt securities.

"In the previous round of sanctions Iran was allowed to use funds for imports from India but this time we have expanded the scope for use of funds to benefit both nations," said an Indian government official, who declined to be named because of the sensitivity of the issue.

The move may help India fix its trade balance, which is currently tilted in favour of Iran.

PAYMENTS TO START SOON

The tax exemption order, though, only refers to crude oil. That means it does not apply to imports of other commodities, such as fertiliser, liquefied petroleum gas and wax.

India, Iran`s top oil client after China, has turned to paying for Iranian oil in rupees as major banking channels dealing in global currencies are closed off by the US sanctions.

"Passing of this notification eases constraints for Indian refiners to make payment," said Sanjay Sudhir, joint Secretary in India`s oil ministry.

An official from India`s top refiner and Iran`s top customer in the country, Indian Oil Corp, said his company would start making payments to Iran from January.

The finance ministry did not respond to a request for comment. Indian Oil Corp and UCO Bank also did not respond.

Last month, the United States introduced the sanctions aimed at crippling Iran`s oil revenue-dependent economy because of its nuclear and ballistic missile programmes and its support for militant proxies in the Middle East.&nbsp;

Washington did, though, give a six-month waiver from sanctions to eight nations, including India, and allowed them to import some Iranian oil.

India`s overall imports from Iran totalled about $11 billion in April-November 2018, with oil accounting for about 90 per cent of the imports.

Iran will be able to register as a foreign portfolio investor, allowing it to invest in Indian government debt.

The direct investment provision could help Iran in participating in Indian oil refiner Chennai Petroleum Corp Ltd`s expansion plans. Iran owns 15.4 per cent of the company.

Iran which used to be the third biggest oil supplier to India slipped to No. 6 in November, according to ship-tracking data and industry sources.

India's finance ministry has exempted rupee payments made to the National Iranian Oil Co (NIOC) for crude oil imports from a steep withholding tax, according to a government order reviewed by Reuters.

India's finance ministry has exempted rupee payments made to the National Iranian Oil Co (NIOC) for crude oil imports from a steep withholding tax, according to a government order reviewed by Reuters. The exemption, put in place December 28 but backdated to November 5, will allow Indian refiners to settle about $1.5 billion of outstanding payments to NIOC. Those have been building up since Tehran was put under stringent US sanctions in early November. The two countries on November 2 signed a bilateral agreement to settle oil trades through an Indian government-owned bank, UCO Bank, in the Indian currency, which is not freely traded on international markets. However, the income of a foreign company that is deposited in an Indian bank account is subject to a withholding tax of 40 per cent plus other levies, leading to a total take by the authorities of 42.5 per cent. That made the agreement unworkable for Iran and led to the freeze in payments by the refiners until the exemption could be introduced. Iran will be able to use the rupee funds for a range of expenses - including imports from India, the cost of its missions in the country, direct investment in Indian projects, and its financing of Iranian students in India, according to another government document reviewed by Reuters. It can also invest the funds in Indian government debt securities. "In the previous round of sanctions Iran was allowed to use funds for imports from India but this time we have expanded the scope for use of funds to benefit both nations," said an Indian government official, who declined to be named because of the sensitivity of the issue. The move may help India fix its trade balance, which is currently tilted in favour of Iran. PAYMENTS TO START SOON The tax exemption order, though, only refers to crude oil. That means it does not apply to imports of other commodities, such as fertiliser, liquefied petroleum gas and wax. India, Iran`s top oil client after China, has turned to paying for Iranian oil in rupees as major banking channels dealing in global currencies are closed off by the US sanctions. "Passing of this notification eases constraints for Indian refiners to make payment," said Sanjay Sudhir, joint Secretary in India`s oil ministry. An official from India`s top refiner and Iran`s top customer in the country, Indian Oil Corp, said his company would start making payments to Iran from January. The finance ministry did not respond to a request for comment. Indian Oil Corp and UCO Bank also did not respond. Last month, the United States introduced the sanctions aimed at crippling Iran`s oil revenue-dependent economy because of its nuclear and ballistic missile programmes and its support for militant proxies in the Middle East. Washington did, though, give a six-month waiver from sanctions to eight nations, including India, and allowed them to import some Iranian oil. India`s overall imports from Iran totalled about $11 billion in April-November 2018, with oil accounting for about 90 per cent of the imports. Iran will be able to register as a foreign portfolio investor, allowing it to invest in Indian government debt. The direct investment provision could help Iran in participating in Indian oil refiner Chennai Petroleum Corp Ltd`s expansion plans. Iran owns 15.4 per cent of the company. Iran which used to be the third biggest oil supplier to India slipped to No. 6 in November, according to ship-tracking data and industry sources.

India exempts rupee payments for Iran oil from hefty taxes: Government order

The arrival of the USS John C Stennis aircraft carrier group in the Gulf to deter Iran from further testing ballistic missiles is likely to dampen Indian hopes that the Trump administration’s exemption of the port of Chabahar from sanctions against the Islamic republic would help it tighten economic relations with Central Asia and further regional integration.

The group’s presence in the Gulf, the first by a US aircraft carrier in eight months, came amid mounting tension between the United States and Iran following the Trump administration’s withdrawal from the 2015 international agreement that curbed Iran’s nuclear programme and the imposition of harsh sanctions against the Islamic republic. It raised the spectre of a potential military conflagration.

The deployment for a period of two months coincided with a suicide attack on a Revolutionary Guards headquarters in Chabahar that killed two people and wounded 40 others.

Saudi and Iranian media reported that Ansar al-Furqan, a shadowy Iranian Sunni jihadi group that Iran claims is supported by the kingdom as well as the United States and Israel, had claimed responsibility for the attack.

Saudi pan-Arab daily Asharq Al-Awsat asserted that the attack “reflects the anger harboured by the (city’s Baloch) minority against the government.” The paper said the Iranian government had expelled thousands of Baloch families from Chabahar and replaced them with Persians in a bid to change its demography. It asserted that Iran was granting nationality to Afghan Shiites who had fought in Syria and Iraq and was moving them to Chabahar.

The paper went on to say that “anti-regime Baloch movements have recently intensified their operations against Tehran in an attempt to deter it from carrying out its plan to expel and marginalise the Baloch from their ancestral regions.”

Saudi Arabia, a staunch supporter of the US’s confrontational approach towards Iran, has pumped large amounts of money into militant, ultraconservative Sunni Muslim anti-Shiite and anti-Iranian religious seminaries along the border between the Pakistani province of Balochistan and the Iranian province of Sistan and Baluchistan that is home to Chabahar, according to militants.

The funding was designed to create the building blocks for a potential covert effort to destabilise Iran by stirring unrest among its ethnic minorities.

The deployment was, according to US officials in response to Iran’s test-firing of a ballistic missile capable of carrying multiple warheads. The US sanctions are in part designed to force Iran to drop its development of ballistic missiles. Iranian officials insist the missiles program is defensive in nature.

&nbsp;“We are accumulating risk of escalation in the region if we fail to restore deterrence,” said US Secretary of State Mike Pompeo.

The spectre of increased military tension in the Gulf with the arrival of the aircraft carrier group and of potentially Saudi and US-backed political violence in Iran and a troubling security situation in Afghanistan threatened to diminish the impact of Washington’s granting Indian investment in Chabahar an exemption from its economic sanctions against Iran.

Indian and Iranian officials fear that the United States’ stepped up military posture and heightened tensions could undermine their efforts to turn Chabahar, which sits at the top of the Arabian Sea, into a hub for trade between India and Central Asia rendering the US waiver worthless.

The officials have their hopes pinned on efforts to engineer a peace process in Afghanistan. US special envoy Zalmay Khalilzad alongside representatives of the UAE, Saudi Arabia and Pakistan met this week with the Taliban. The talks are intended to negotiate an end to Afghanistan’s 17-year old war.

An Afghan government delegation, in what diplomats saw as a sign of progress, hovered in the corridors but did not take part in the meeting because of the Taliban’s insistence that it will only talk to the United States. Talks with the Taliban have so far stalled because of the group’s insistence on a timetable for the withdrawal of all foreign troops from Afghanistan.

US officials said the aircraft carrier group, beyond seeking to deter Iran, would also support the US war effort in Afghanistan where the United States has ramped up airstrikes in an effort to press the Taliban into peace talks.

The talks were an opportunity, particularly for Saudi Arabia, whose utility as an ally is being questioned by the US Congress in the wake of the October 2 killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul, and Pakistan, which the United States accuses of supporting the Taliban, to demonstrate their utility.

US President Donald Trump asked Pakistani prime minister Imran Khan in a letter earlier this month to help bring the Taliban to the negotiating table.

While Saudi Arabia and Pakistan have an interest in using their close ties to the Taliban to help forge an end to the Afghan war, it's not immediately clear that they want to see reduced tensions facilitate the emergence of Chabahar as an Indian-backed hub.

A Saudi think tank, the Arabian Gulf Centre for Iranian Studies (AGCIS) renamed the International Institute of Iranian Studies that is believed to be backed by Saudi crown prince Mohammed bin Salman, argued in a study last year that Chabahar posed “a direct threat to the Arab Gulf states” that called for “immediate countermeasures.”

Written by Mohammed Hassan Husseinbor, identified as an Iranian political researcher, the study warned that Chabahar posed a threat because it would enable Iran to increase greater market share in India for its oil exports at the expense of Saudi Arabia, raise foreign investment in the Islamic republic, increase government revenues, and allow Iran to project power in the Gulf and the Indian Ocean.

Noting the vast expanses of Iran’s Sistan and Baluchistan province, Husseinbor went on to say that “It would be a formidable challenge, if not impossible, for the Iranian government to protect such long distances and secure Chabahar in the face of widespread Baluch opposition, particularly if this opposition is supported by Iran’s regional adversaries and world powers.”

Similarly, Pakistan is heavily invested in Gwadar, the Chinese-backed port in Balochistan that is a crown jewel of the $45 billion-plus China Pakistan Economic Corridor (CPEC), a pillar of the People’s Republic’s Belt and Road initiative. Gwadar is a mere 70 kilometres up the coast from Chabahar.

"Pakistan sees India as an existential threat and the idea of India being in any way present on Pakistan's western flank in Afghanistan will always raise alarm bells in Islamabad," said South Asia scholar Michael Kugelman.

If the arrival of the USS John C Stennis aircraft carrier group in the Gulf heralds heightened tension, Pakistan may have less reason to worry. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The arrival of the USS John C Stennis aircraft carrier group in the Gulf to deter Iran from further testing ballistic missiles is likely to dampen Indian hopes that the Trump administration’s exemption of the port of Chabahar from sanctions against the Islamic republic would help it tighten economic relations with Central Asia and further regional integration.

The arrival of the USS John C Stennis aircraft carrier group in the Gulf to deter Iran from further testing ballistic missiles is likely to dampen Indian hopes that the Trump administration’s exemption of the port of Chabahar from sanctions against the Islamic republic would help it tighten economic relations with Central Asia and further regional integration. The group’s presence in the Gulf, the first by a US aircraft carrier in eight months, came amid mounting tension between the United States and Iran following the Trump administration’s withdrawal from the 2015 international agreement that curbed Iran’s nuclear programme and the imposition of harsh sanctions against the Islamic republic. It raised the spectre of a potential military conflagration. The deployment for a period of two months coincided with a suicide attack on a Revolutionary Guards headquarters in Chabahar that killed two people and wounded 40 others. Saudi and Iranian media reported that Ansar al-Furqan, a shadowy Iranian Sunni jihadi group that Iran claims is supported by the kingdom as well as the United States and Israel, had claimed responsibility for the attack. Saudi pan-Arab daily Asharq Al-Awsat asserted that the attack “reflects the anger harboured by the (city’s Baloch) minority against the government.” The paper said the Iranian government had expelled thousands of Baloch families from Chabahar and replaced them with Persians in a bid to change its demography. It asserted that Iran was granting nationality to Afghan Shiites who had fought in Syria and Iraq and was moving them to Chabahar. The paper went on to say that “anti-regime Baloch movements have recently intensified their operations against Tehran in an attempt to deter it from carrying out its plan to expel and marginalise the Baloch from their ancestral regions.” Saudi Arabia, a staunch supporter of the US’s confrontational approach towards Iran, has pumped large amounts of money into militant, ultraconservative Sunni Muslim anti-Shiite and anti-Iranian religious seminaries along the border between the Pakistani province of Balochistan and the Iranian province of Sistan and Baluchistan that is home to Chabahar, according to militants. The funding was designed to create the building blocks for a potential covert effort to destabilise Iran by stirring unrest among its ethnic minorities. The deployment was, according to US officials in response to Iran’s test-firing of a ballistic missile capable of carrying multiple warheads. The US sanctions are in part designed to force Iran to drop its development of ballistic missiles. Iranian officials insist the missiles program is defensive in nature. “We are accumulating risk of escalation in the region if we fail to restore deterrence,” said US Secretary of State Mike Pompeo. The spectre of increased military tension in the Gulf with the arrival of the aircraft carrier group and of potentially Saudi and US-backed political violence in Iran and a troubling security situation in Afghanistan threatened to diminish the impact of Washington’s granting Indian investment in Chabahar an exemption from its economic sanctions against Iran. Indian and Iranian officials fear that the United States’ stepped up military posture and heightened tensions could undermine their efforts to turn Chabahar, which sits at the top of the Arabian Sea, into a hub for trade between India and Central Asia rendering the US waiver worthless. The officials have their hopes pinned on efforts to engineer a peace process in Afghanistan. US special envoy Zalmay Khalilzad alongside representatives of the UAE, Saudi Arabia and Pakistan met this week with the Taliban. The talks are intended to negotiate an end to Afghanistan’s 17-year old war. An Afghan government delegation, in what diplomats saw as a sign of progress, hovered in the corridors but did not take part in the meeting because of the Taliban’s insistence that it will only talk to the United States. Talks with the Taliban have so far stalled because of the group’s insistence on a timetable for the withdrawal of all foreign troops from Afghanistan. US officials said the aircraft carrier group, beyond seeking to deter Iran, would also support the US war effort in Afghanistan where the United States has ramped up airstrikes in an effort to press the Taliban into peace talks. The talks were an opportunity, particularly for Saudi Arabia, whose utility as an ally is being questioned by the US Congress in the wake of the October 2 killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul, and Pakistan, which the United States accuses of supporting the Taliban, to demonstrate their utility. US President Donald Trump asked Pakistani prime minister Imran Khan in a letter earlier this month to help bring the Taliban to the negotiating table. While Saudi Arabia and Pakistan have an interest in using their close ties to the Taliban to help forge an end to the Afghan war, it's not immediately clear that they want to see reduced tensions facilitate the emergence of Chabahar as an Indian-backed hub. A Saudi think tank, the Arabian Gulf Centre for Iranian Studies (AGCIS) renamed the International Institute of Iranian Studies that is believed to be backed by Saudi crown prince Mohammed bin Salman, argued in a study last year that Chabahar posed “a direct threat to the Arab Gulf states” that called for “immediate countermeasures.” Written by Mohammed Hassan Husseinbor, identified as an Iranian political researcher, the study warned that Chabahar posed a threat because it would enable Iran to increase greater market share in India for its oil exports at the expense of Saudi Arabia, raise foreign investment in the Islamic republic, increase government revenues, and allow Iran to project power in the Gulf and the Indian Ocean. Noting the vast expanses of Iran’s Sistan and Baluchistan province, Husseinbor went on to say that “It would be a formidable challenge, if not impossible, for the Iranian government to protect such long distances and secure Chabahar in the face of widespread Baluch opposition, particularly if this opposition is supported by Iran’s regional adversaries and world powers.” Similarly, Pakistan is heavily invested in Gwadar, the Chinese-backed port in Balochistan that is a crown jewel of the $45 billion-plus China Pakistan Economic Corridor (CPEC), a pillar of the People’s Republic’s Belt and Road initiative. Gwadar is a mere 70 kilometres up the coast from Chabahar. "Pakistan sees India as an existential threat and the idea of India being in any way present on Pakistan's western flank in Afghanistan will always raise alarm bells in Islamabad," said South Asia scholar Michael Kugelman. If the arrival of the USS John C Stennis aircraft carrier group in the Gulf heralds heightened tension, Pakistan may have less reason to worry. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Chabahar port: Stepped up US military posture in Gulf threatens India's interests

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