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New Sanctions Measure Installed By Iran To “Lock-Up” Oil Profits
Dec. 07, 2012 09:50AM PST
Oil and Gas InvestingThe United States has aggressively raised its use of financial sanctions this year to pressure Iran to stop pursuing nuclear weapons, but a measure that takes effect in February could have the most powerful impact yet, the Treasury Department’s top sanctions official said on Thursday.
The United States has aggressively raised its use of financial sanctions this year to pressure Iran to stop pursuing nuclear weapons, but a measure that takes effect in February could have the most powerful impact yet, the Treasury Department’s top sanctions official said on Thursday.
Highlights from market news:
– Starting February 6, U.S. law will prevent Iran from repatriating earnings it gets from its shrinking oil export trade, a powerful sanction that will “lock up” a substantial amount of Tehran’s funds
– Along with a European Union embargo on Iranian oil, the sanctions have cut Iran’s oil exports by more than 50 percent, costing Iran up to $5 billion per month, and led to a plunge in Iran’s currency
– Japan, which counts on Iranian oil but has slashed its purchases in compliance with sanctions laws, has expressed concern about the new provision taking effect in February.