Economic sanctions imposed on Iran will impact maritime traffic in the Strait of Hormuz, a main oil artery, an Iranian naval commander said Tuesday.

"The cruel sanctions being imposed on Iran will affect Strait of Hormuz functions," Rear-Admiral Hossein Khanzadi was quoted by the official Islamic Republic News Agency as saying.

The waterway between Iran and Oman is among the world's most heavily trafficked oil arteries, hosting about 35 percent of all of the world's oil moving by sea, or nearly 20 percent of the global trade in oil. Iran has said that if its oil exports are isolated by U.S. sanctions that go into force in November, it would ensure that nobody's oil would flow through the strait.

"It should be remembered that decisions made in international arena would not affect just a country; rather they would influence measures by other players too," the naval commander said.

Iran's latest warning follows signs that economic pressures are already taking their toll. The nation's currency, the rial, hit an all-time low against the U.S. dollar during the weekend. Iranian officials blamed their "enemies" for trying to collapse the economy and stoke domestic unrest.

The U.S. decision in May to pull out of the multilateral Joint Comprehensive Plan of Action, a nuclear agreement that extended sanctions relief to Iran, leaves the deal in jeopardy. Without U.S. involvement, Iranian President Hassan Rouhani said Tuesday the agreement is in the hands of European powers.

"The ball is in Europe's court in the limited time remaining," he said during a meeting with the British envoy to Tehran.

European leaders have introduced measures aimed at protecting companies doing business with Iran, though U.S. sanctions pressures in Iran's Central Bank make those efforts complicated.

On Monday, U.S. President Donald Trump said he'd be willing to talk to Rouhani without preconditions. Bahram Qasemi, a spokesman for the Iranian Foreign Ministry, said that was unlikely.

"With this United States and with its policies, there will remain no way to negotiations as Washington has already proved its untrustworthiness," he was quoted by IRNA as saying.

Sidelining Iran from the energy markets could leave about a million barrels of oil per day off the market at a time when few other producers could make up for the difference in short order. Some U.S. sanctions go into force on Wednesday and oil-related measures snap back in November.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Total's position boosted by position in LNG
Washington (UPI) Jul 27, 2018
French supermajor Total said Thursday its net production was up nearly 10 percent from last year, driven in part by gains in liquefied natural gas. Total was among the first of the supermajors to release results from the second quarter. Compared with the same period last year, the company's $3.6 billion in adjusted net income was up 44 percent. Chairman and CEO Patrick Pouyanné said a realized average price for oil at $74 per barrel during the second quarter supported growth. "In ... read more