As threatened by US President Donald Trump who pulled out of a 2015 Joint Comprehensive Plan of Action (JCPOA) with Iran, the US sanctions against Iran have come into effect. However, Iran believes that it will be able to remain unaffected for the most part due to these sanctions that the US hopes will bring the country’s economy to its knees and have it sticking to its terms of pursuing a solely civilian nuclear energy program, one of the main reasons that President Donald Trump backed out of the JCPOA in spite of the warnings of other world leaders.
For a period of six months, the US has granted an exemption to eight countries to continue buying crude oil from Iran for a period of six months before reviewing any further allowance of this kind. The countries that have been allowed to continue include nations like India and South Korea, some of the largest importers of Iranian crude oil, as well as some European Union countries who have yet to be identified as having claimed a similar exemption from the US. So far, no further information has been made publicly available regarding any limits in the quantities of crude oil that can be imported by these exempt countries.
As these sanctions drew nearer to their date of being imposed, the crude oil prices saw a sharp rise in September and much of October owing to fears of shortage in the market. However, rising production in the US, Russia and Saudi Arabia, as well as Iranian crude oil coming back into the market for a limited time have exerted a downward pressure on the per barrel price of crude oil.