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US claims success on Iran sanctions policy: Update

  • Spanish Market: Crude oil, Metals, Natural gas
  • 06/08/18

Adds details on sanctions, EU response

Washington says its economic pressure tactics have already constrained Tehran, with the first batch of sanctions curbing Iran's foreign exchange earnings to go into effect at 12:01am ET tomorrow.

The US Treasury Department will start enforcing a prohibition on acquisitions of US dollar notes by Iran's central bank, trade in gold and semi-finished metals, and transactions with Iran's sovereign debt. The sanctions were lifted in January 2016 under the Joint Comprehensive Plan of Action (JCPOA), in exchange for restrictions on Iran's nuclear program. But President Donald Trump in May withdrew the US from that agreement.

The mere threat of sanctions has caused the devaluation of the Iranian rial and sparked economic protests even though "we were warned by experts that the threat of US unilateral sanctions would not be an effective tool," a senior administration official said today. "In the next 90 days the increased economic pressure, culminating in petroleum sector sanctions, will have an exponential effect on Iran's fragile economy."

The more intrusive sanctions, on Iran's oil sector, will come into force at midnight ET on 5 November. The sanctions will target exports of crude and petroleum products from Iran. As before, the sanctions will exclude natural gas exports from Iran, as well as flows from the Shah Deniz gas field in Azerbaijan.

The Treasury said today its package of new sanctions, unveiled in an executive order signed by Trump today, will not only snap back the punitive measures in effect between July 2012 and January 2016 but add new prohibitions designed to prevent establishing workaround payment mechanisms for the purchase of Iranian oil, including through barter arrangements. It also institutes US visa restrictions on corporate officers for financial and other foreign institutions dealing with Iran, state-owned NIOC and other energy sector companies.

As in 2012-16, the Treasury will enforce these sanctions against foreign buyers of Iranian oil and products unless the State Department exempts that country from US sanctions.

The sanctions written into US law require that the administration either compels foreign buyers of Iranian oil to reduce their purchases to zero by 4 November, or extracts a guarantee to significantly reduce them in exchange for an exemption from sanctions.

US officials today reiterated the previous guidance that the ultimate goal is to drive Iranian exports to zero, but waivers for some buyers would be available. "We are not looking to grant exemptions, but we will be glad to discuss requests on a case-by-case basis."

So far reactions from other countries have been mixed.

South Korean buyers have halted purchases and are pushing Seoul to ask for a waiver from US sanctions. Japanese oil importers likewise are asking their government to secure a waiver.

But China, which is the largest buyer of Iranian crude, has not backed off Iranian purchases. In fact, China's largest refiner, state-controlled Sinopec, is planning to import less US crude, as relations with Washington deteriorate over an escalating trade war.

The US has increasingly tense relations with another major buyer of Iranian crude, Turkey. The EU, meanwhile, has urged Washington not to impose sanctions on Iran and will activate its blocking statute tomorrow, in a move to counter US sanctions against Iran. The regulation forbids EU companies from complying with the extraterritorial effects of US sanctions unless the firms have been granted an exemption and, in theory, allows companies to recover damages from such sanctions from the US.

Another senior administration official today dismissed the EU actions as ineffective. "This is not something we are concerned about," the official said. "What you need to look at is the messages that companies and financial institutions are sending by leaving Iran."

Iranian crude shipments to Europe in July held steady around the reduced levels seen in June.

US diplomats have visited more than 20 countries to press for a reduction in imports from Iran, and that work will continue through the year-end, the official said. Washington insists it retains the leverage to compel its course of action. "We made it very clear we will aggressively enforce the (president's) order. We will work with countries around the world to do so."

Tehran, in turn, says its diplomatic effort to preserve what is left of the JCPOA is paying off. Iranian foreign minister Mohammad Javad Zarif yesterday cited a "clear global consensus on need to take concerted action to preserve JCPOA" following his meetings with the remaining signatories to the agreement in Singapore.

JCPOA signatories — China, Russia, France, Germany, the UK and the EU collectively — in a joint statement today vowed to "work on the preservation and maintenance of effective financial channels with Iran, and the continuation of Iran's export of oil and gas." They said they will intensify those efforts in coming weeks, including "with third countries interested in supporting the JCPOA and maintaining economic relations with Iran."


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10/03/25

Brazil ignores fossil fuel phase-out in Cop 30 letter

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists praised Brazil's stance of making UN Cop 30 a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago unveiled on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's [public feud](http://direct.argusmedia.com/newsandanalysis/article/2657369 with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter was celebrated for recognizing "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Previous Cop agreements and global stocktakes (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris Agreement — were ignored and pushed back against in Baku's final text. Correa do Lago's letter focused on rolling back decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes the climate financing target of $1.3 trillion. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said in his letter. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico inflation quickens in February


10/03/25
10/03/25

Mexico inflation quickens in February

Mexico City, 10 March (Argus) — Mexico's consumer price index (CPI) quickened to an annual 3.77pc in February, as deceleration in agriculture prices was offset by faster inflation in services prices. Headline inflation rebound from a four-year low of 3.59pc in January, but held for a sixth consecutive month within the central bank's target range of 2pc to 4pc. The result, reported by statistics agency Inegi on 7 February, was slightly below the 3.76pc median estimate from 38 analysts polled in Citi Research's 5 March survey. Fruit and vegetable prices contracted 5.54pc in February after a 7.73pc contraction in January, which more than offset the 5.71pc inflation in egg prices driven by bird flu containment. It was not enough, however, to overcome services inflation of 5.53pc in February, up from 5.25pc the prior month, with notable increases in higher education prices. Despite the higher headline rate, Mexican bank Banorte, said the inflation trend remains favorable with short-term climate conditions suggesting fruit and vegetable prices may be less volatile in coming months than the same time last year. As such, Banorte confirmed its call for the central bank to issue a second consecutive half-point cut to its target interest rate on 27 March, which would take it to 9pc from 9.5pc. Banorte also noted stability in Mexico's core inflation, which excludes volatile energy and food prices, to 3.65pc in February from 3.66pc the previous month. Meanwhile, energy inflation eased to 3.74pc in February from 6.34pc the previous month, with electricity inflation easing to 5.07pc from 5.32pc in January. The trend for energy inflation is "encouraging", said Banorte, noting the recent OPEC+ move to gradually raise production from April, helping to lower international reference prices. The bank also cited the recent agreement between President Claudia Sheinbaum and gasoline dealers to cap low-grade fuel at Ps24 per liter ($4.46/gallon). By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Vitol's Sarroch refinery crude receipts at 6-year high


10/03/25
10/03/25

Vitol's Sarroch refinery crude receipts at 6-year high

Barcelona, 10 March (Argus) — Crude receipts at refiner Saras' 300,000 b/d Sarroch refinery in Italy rose to a six-year high in February, with the plant receiving a trio of new grades in February-March. Receipts were close to 320,000 b/d last month compared with 205,000 b/d in January, according to Argus tracking. Receipts averaged 245,000 b/d in 2024, slightly lower than around 250,000 b/d in 2023. Saras had aimed for 265,000-270,000 b/d last year, without success. In the past decade the unit has consistently underperformed targets, not achieving much more than 260,000 b/d in a year. Former workers said the plant is unable to distill crude in excess of 285,000 b/d. After repeated issues and "technical hiccups" it was unable to run at that pace for extended periods, a problem shared with the large majority of its Mediterranean peers. But Saras appears to have been making efforts to improve availability with a string of planned maintenance programmes in the past 18 months. New owners, trading firm Vitol, may be keen to test the unit's capabilities. Vitol purchased the unit last year in a €1.7bn ($1.84bn) deal and appear to be introducing new grades. Sarroch took receipt of a first cargo of 28°API Guyanese grade Payara Gold in February, having in December sampled Senegal's Sangomar crude for the first time. Receipts in February comprised 125,000 b/d of Libyan crude, split between Amna, Bouri and Zueitina grades, 70,000 b/d of Angolan crude split between Palanca and Pazflor, 50,000 b/d of Azeri BTC Blend, 30,000 b/d of US WTI, 25,000 b/d of Caspian CPC Blend and 20,000 b/d of the Payara Gold. Argus assessed these at a weighted average gravity of 35.4°API and 0.5pc sulphur content, compared with 32.2°API and 0.7pc sulphur in January. The slate averaged an estimated 33.3°API and 0.8pc sulphur last year, almost identical to 2023. The pace of delivery in March appears good, with around 600,000 bl of BTC Blend unloaded. Twi further new grades for Sarroch were received in the form of 1mn bl of heavy sweet Meleck from Niger, and 735,000 bl of the re-branded Kazakh Urals grade, Kebco. Sarroch was not a major buyer of Urals, prior to the imposition of sanctions following the Russia-Ukraine conflict, and received its last Baltic-loaded Urals in April 2022 . A further 1mn bl each of Brazilian Frade and Libyan Attifel are on route. By Adam Porter Sarroch crude receipts mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mark Carney to be Canada's next prime minister: Update


10/03/25
10/03/25

Mark Carney to be Canada's next prime minister: Update

Adds recent poll data on national election, more on Carney's background. Calgary, 10 March (Argus) — Mark Carney is to replace Justin Trudeau as Canada's prime minister after comfortably winning the governing Liberal Party's leadership contest. Carney, who served as governor for the Bank of Canada and then the Bank of England, will be sworn in later this week once Trudeau officially resigns. Carney has never held political office and does not have a seat in Canada's House of Commons. In his victory speech, he vowed to protect Canada's sovereignty and stand firm in the face of US president Donald Trump's trade war. Although Trump on 7 March repealed most of the tariffs he imposed on Canada just a few days earlier, Carney pledged to continue with retaliatory measures. "My government will keep our tariffs on until the Americans can show us respect," he said. "The Americans, they should make no mistake, in trade, as in hockey, Canada will win." Carney also referenced Trump's repeated calls to make Canada "the 51st state" of the US, vowing that "Canada never ever will be part of America in any way, shape or form". Liberals rebound in polls on tariff war Carney will stand for the Liberal Party in the next general election, which must be held by 20 October. Opposition parties have vowed to trigger a general election at first chance when Parliament returns to session on 24 March, but a recent rebound in polls may prompt the Liberals to call one earlier yet. An Ipsos poll done in late-February showed the Liberals making up a 26-point deficit to take a narrow lead, the first time since 2021. The Conservatives have since pulled ahead slightly, according to Nanos Research, while a poll by Innovative Research Group indicates a 38pc to 31pc lead for the Conservatives over the Liberals. Even with the Conservatives ahead, both indicate a much tighter race compared to earlier in the year. The remarkable rebound for the Liberals comes after the promise Trudeau would no longer be the face of the party, and the perceived similarities between Trump and Conservative leader Pierre Poilievre. Trump's aggressive actions and rhetoric towards Canada have stoked anti-American sentiment across the country and prompted the public to reexamine the trade relationship with its southern neighbour. A more recent poll by Ipsos shows only 1-in-10 Canadians want to strengthen their reliance on the US. Carney was born in Northwest Territories and grew up in Alberta, but it remains to be seen if his western upbringing will help the Liberal Party's success in the region given their unpopularity with the oil patch. The last time Canada had a prime minister born in western Canada was Kim Campbell in 1993 who succeeded Brian Mulroney under similar circumstances when he stepped down from the top post. By Brett Holmes and James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US targets 'lower' oil price, no target: Wright


10/03/25
10/03/25

US targets 'lower' oil price, no target: Wright

Washington, 10 March (Argus) — US president Donald Trump's administration is pushing for lower oil prices but has set no specific price target and expects to bring more supply into the market through deregulation and permitting reform, US energy secretary Chris Wright says. "We certainly believe it's in the best interest of the American people, and honestly, the citizens of the world to have lower oil prices," Wright said on the sidelines of the CERAWeek by S&P Global conference in Houston. But he added that "I won't have a specific price" and that "the actions of this administration are to make it easier to produce more oil and natural gas for the producers, and therefore you get more investment." Unlike Wright, a former oil industry executive who has taken over the Department of Energy under Trump, other senior advisers to Trump have referred to $50/bl as a preferable oil price target. Those include treasury secretary Scott Bessent and Trump's trade adviser Peter Navarro. Trump's call on Opec to "bring down the price of oil" preceded the producer group's decision last week to proceed with plans to gradually return 2.2mn b/d of supply to the market. "We're pleased, of course, to see Opec returning barrels to the marketplace," Wright said, but he added that the US has made no "specific requests or demands". Climate change as "side effect" Wright, in a speech before the general CERAWeek audience, pounded on former president Joe Biden's administration for allegedly ignoring the concerns of the US oil and gas industry and basing its energy sector decisions on what Wright called "irrational, quasi-religious climate policies". Wright called climate change a "side effect" of economic development. "Everything in life involves trade-offs," he said. The potential benefits of Biden-era climate policies were not worth the "endless sacrifices on our citizens", Wright said. "The Trump administration intends to be much more scientific and mathematically literate." Wright's spirited defense of oil and gas and denunciation of climate change policies drew some applause from the audience. Still, the rapid pace of change in the US energy policy every four years is "not the right policy approach," Chevron chief executive Mike Wirth said at CERAWeek. The Trump administration's executive actions affecting the energy sector need to be backed by legislation that makes permitting reform possible, Wirth said. Wright acknowledged a possible contradiction between Trump's vision for lower oil prices and more output, but said that enabling more investment and new infrastructure would address that dilemma. "It's not just 'drill baby drill', it's also 'build baby build'," Wright said. Nasser supports transition Speaking at a separate panel, Saudi Aramco chief executive Amin Nasser echoed many of the same themes raised by Wright, including the claim that the energy transition did not address the needs of the world's poorest citizens in the emerging economies. But, unlike Wright who appeared to disparage solar and offshore wind resources, Nasser said that Saudi Arabia's energy transformation will make good use of renewable energy sources and will continue to aim to reduce greenhouse gas emissions. Trump's administration surprised the US oil and gas industry on 4 March by proceeding with plans to impose a 10pc tax on Canadian energy imports and a 25pc tax on energy imports from Mexico. Trump lifted the tariffs on 7 March but has said he may bring them back on 2 April. "We have, behind closed doors, vigorous debates about tariffs, people arguing all sides of that," Wright said. "What is the ultimate outcome going to be? We don't know for sure." By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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