EghtesadOnline: The White House will strictly enforce the upcoming secondary sanctions on companies that do business with Iran, US President Donald Trump reaffirmed on Sunday.
Trump announced on May 8 the US would withdraw from the nuclear accord with Iran, spurring global confusion as international companies race to unwind their operations in the country.
In the aftermath of that decision, the administration said it would sanction companies that continue to do business with Iran, The Washington Examiner reported.
Other parties to the deal—Britain, China, Germany, France, Russia and the European Union—have criticized the US withdrawal, which has left the agreement at risk of collapse, Financial Tribune reported.
While some foreign governments are seeking to pass measures to force companies to adhere to the terms of the Iran agreement crafted under the administration of US former president, Barack Obama, Trump warned that those businesses would violate the new secondary sanctions.
“Yes, of course. That’s what we’re doing. Absolutely,” the president said on Fox News when asked if the US would sanction European companies that do business with Iran.
The US decision to leave the Iran deal has contributed to global increase in oil prices. The Organization of Petroleum Exporting Countries on Friday said it will boost oil production by 1 million barrels per day in July to help lower costs.
Trump criticized that agreement for not going far enough and tweeted on Saturday that King Salman of Saudi Arabia agreed to increase oil production by 2 million barrels.
“King Salman affirmed that the kingdom maintains a 2 million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance and stability, and in coordination with its producer partners, to respond to any eventuality,” the White House said in a statement.
According to a fact sheet released by the US Department of the Treasury, the United States entered a wind-down period before snapping back the sanctions it agree to lift in 2015 on Iran.
After 90 days—on August 6—US sanctions on Iran’s acquisition and purchase of US dollar notes, on its trade in gold and precious metals, on the sale and transfer of various metals and materials, on the Iranian rial, on Iranian sovereign debt and on Iran’s automotive sector will come back into place. The United States will also revoke JCPOA-specific import authorizations for Iranian goods.
On November 4, a second 180-day wind-down period will end and the United States will implement further sanctions against Iran. According to the US Treasury Department, these will include sanctions on Iran’s shipping industry, oil industry, secondary sanctions against third-country financial institutions doing business with Iran and sanctions on Iran’s energy sector. Other JCPOA-specific exceptions for Iran will also end.
The Trump administration last week began dismantling the sanctions relief that was granted to Iran under the 2015 nuclear deal, AP reported.
The US Treasury Department announced on Wednesday it had revoked licenses that allowed US-controlled foreign firms to export commercial aircraft parts to Iran and permitted Americans to trade in Iranian carpets, pistachios and caviar.