US restores some Iran nuclear sanctions waivers

Market: Crude oil
05/02/22

The US administration is restoring waivers that enable foreign companies to work with Iran's civilian nuclear installations, as Washington and Tehran approach the finish line in talks aimed at lifting curbs on Iran's oil exports in exchange for reinstating restrictions on its nuclear program.

"We decided to restore a sanctions waiver to enable third party participation in nuclear non-proliferation and safety projects in Iran due to growing non-proliferation concerns, in particular with respect to increasing stockpiles of enriched uranium in Iran," a senior State Department official said today.

The action does not remove US sanctions against the sale of Iranian oil.

Granting the waiver could facilitate technical discussions "in the final weeks of talks" to restore the 2015 Joint Comprehensive Plan of Action (JCPOA), the official said, while cautioning that "this is not a signal that we are about to reach an understanding" on restoring the nuclear deal.

While indirect US-Iranian talks at the political level have taken a break, expert-level discussions continue with mediation of the EU and other remaining parties to the agreement to hash out a sequence of steps required for lifting sanctions and restoring curbs on Iran's nuclear program.

Among the thorniest issues to be addressed is what to do with the inventory of enriched uranium that Iran has built since 2019. When the JCPOA went into effect in 2016, Iran allowed Russia to remove some of the dual use nuclear material to bring it into compliance with the agreement. Civilian nuclear research in Iran is conducted in many of the same facilities that the US and the UN nuclear watchdog the IAEA have have identified as allowing Tehran to make advances on its theoretical path to a nuclear weapon. Tehran denies pursuing a nuclear weapon.

Former president Donald Trump's administration reimposed sanctions on Iran's civilian nuclear program in May 2020, doing away with the last remnants of the JCPOA. The Trump administration kept the waivers in place until that time, despite exiting from the JCPOA in November 2018, in part because it provided a degree of visibility into Iran's nuclear program. Former secretary of state Mike Pompeo justified reimposing those sanctions by citing advances in Iran's nuclear program. Tehran began selectively flouting JCPOA curbs on its nuclear program in May 2019, after the US instituted a policy of allowing "zero exports" of oil from Iran. That policy proved unsuccessful in zeroing out Iran's oil exports but gave Iran the pretext to restart its nuclear program. US officials say Iran is now "within weeks" of reaching a theoretical threshold of having enough material for a functioning nuclear weapon.

"The Trump administration provided a similar waiver for years, even after its reckless decision to leave the JCPOA, in recognition of this non-proliferation value," the US official said. "We are now returning to that status quo."

A restoration of the deal in its original form could realistically add 1.6mn b/d of Iranian crude to global supply within six to nine months of its implementation. If talks are successfully concluded, the timeline cited by US diplomats would suggest Iran's full reintegration in global oil markets by late 2022 or early 2023.

As talks move into the final stretch, President Joe Biden's administration is facing resistance not only from the Republicans but also members of the president's own party in Congress. Senate Foreign Relations Committee chairman Bob Menendez (D-New Jersey) this week criticized the administration for setting aside its initial pledge to pursue a "stronger and longer" deal — with new curbs on Iran's missile program and regional activities — in place of the JCPOA. Menendez has scheduled a closed-door hearing of his committee next week to allow the State Department's special Iran envoy, Rob Malley, to brief senators on the talks.

The senior US military commander in the Middle East, general Frank McKenzie, on 3 February offered unusual, if indirect, criticism of the US-Iran diplomacy as well, echoing the argument about Iran's missile program and noting that Iran would remain a threat to the US interests in the region even if the JCPOA were restored.

By Haik Gugarats

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Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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