U.S. President Barack Obama said today that “there is enough supply of oil from other countries,” so it gives green light to sanctions against Iran and those countries that buy oil to Tehran.
The measure seeks to isolate the Iranian government in a time of rising tension, amid fears that the country’s nuclear program seeks to develop nuclear weapons.
“There is enough oil supply from other countries apart from Iran to allow a significant reduction in the volume of oil bought by Iran or through foreign financial institutions,” said Obama in a memo released by the White House.
As a result of this directive, the U.S. can continue with a new round of sanctions in order to stifle the Central Bank of Iran, through which do most of the purchases of Iranian oil.
The period from the start that these sanctions take effect is late June when the well is scheduled to start operating the embargo approved by the European Union on imports of Iranian oil.
Obama has said he took “this decision after analyzing the current global economic conditions, increased production in some countries, the level of production capacity and the existence of strategic reserves.”
However, he stressed that he would keep “a close watch on the situation to ensure that the market can continue to accommodate a reduction in oil purchases from Iran.”
The sanctions by Washington include exemptions for countries that continue to acquire Iranian oil, but demonstrate a significant reduction in purchases of crude from Tehran, although the details are what the reference levels.
Obama’s announcement comes amid the rise in the price of gasoline in the U.S. in election year, something the Republican caucus has used to criticize the president for his inability to stop it and has become a major concern of citizens.
Category: Business News