US President Donald Trump renews sanctions against Iran, Opec’s third-largest producer. Photo: ReutersSingapore: For the world’s biggest oil buyers, the imposition of US sanctions on Iran will be a case of deja vu. The US will assess each country’s efforts “including the quantity and percentage of the reduction in purchases of Iranian crude oil, the termination of contracts for future delivery of Iranian crude oil, and other actions that demonstrate a commitment to decrease substantially such purchases,” according to the Treasury Department. Currencies and banksIn order to skirt the US financial system, Asian buyers could also resort to using currencies other than the dollar to pay Iran for their oil purchases. India initially paid Iran via a Turkish bank before routing payments through a domestic financial institution the last time sanctions were in place.

Source: Mint May 09, 2018 03:00 UTC