Iran sanctions bypass will have no impact on shipping.

Catogory : Market Report

Iran’s oil customers are already calling a halt to tanker trades as the US continues to exert pressure on all countries and companies dealing with Iran.

THE creation of a special payments system to facilitate trade with Iran and bypass the reimposition of US sanctions next month will have minimal impact on shipping businesses’ ability to deal with Iran.

China, Russia, Germany, the UK and France have agreed to “assist and reassure economic operators pursuing legitimate business with Iran” including its oil exports by creating a “special purpose vehicle” — effectively a legal method of payment that circumvents US sanctions.

While details of how the payments system would work have not yet been developed, the five countries which remain signatories to a 2015 Iran nuclear deal intend to launch the so-called SPV before the US hits Iran with a second batch of measures next month, targeting its oil exports, shipping and payments from its central bank.

The co-ordinated move, announced at the United Nations general assembly on Tuesday, is the latest step by the five powers to protect the foundering nuclear deal, known as the Joint Comprehensive Plan of action, which US President Donald Trump withdrew from earlier this year after calling it the “worst deal ever”.