Sanctions End Trade, Threaten to Increase Oil Prices
The already tumultuous financial state in Greece looks to get worse in the near future, with the announcement that Iran is ending sales to the nation’s two major oil companies. The move comes because sanctions on Iran’s banking industry has complicated the payment systems, and the companies simply stopped paying for their oil in response.
The European Union’s sanctions on Iran have hit home in a number of ways already, and have kept the spot price on Brent North Sea Crude some $20 a barrel higher than its US equivalents. The scramble by these Greek companies, Hellenic Petrol and Motor Oil Hellas, is expected to increase prices yet again.
Hellenic explained the problem earlier this week, saying that they have been using a Turkish bank to make payments for the oil and the European Union has started blocking those transactions, even though the EU embargo isn’t supposed to begin until July.
The loss of customers the banking sanctions have created has forced Iran to rely more and more on exports to China and India, and to organize barter deals instead of cash transactions. China in particular has been reported to have negotiated a significant discount on Iranian oil for its troubles, while the EU’s supplies continue to get more expansive.
Last 5 posts by Jason Ditz
- Canadian ISIS Airstrike May Have Killed 27 Civilians - September 3rd, 2015
- Is Saudi War Just Accelerating Yemen's Split? - September 3rd, 2015
- Iran Deal Shored Up as More Senate Dems Endorse It - September 3rd, 2015
- US Troops Ordered to Prepare for ISIS Chemical Attacks - September 3rd, 2015
- Senate GOP Looks for New Ways to Undermine Iran Pact - September 3rd, 2015