Iran halts some JCPoA commitments as US withdrawal anniversary reaches!
Market News
– In the anniversary of US withdrawal from JCPoA, Iranian president, Hassan Rouhani, announced that Iran is halting some of its commitments under the 26th and 36th clauses of nuke deal. Stressing that Iran has no intentions to abandon the agreement, the Iranian president reached other involved parties pragmatic actions against the US tumblings. World leaders have yet to respond to this event, however, the French foreign affairs ministry emphasized that JCPoA is a must for both sides and all parties shall be bound to the agreement.
– After some massive controversies around raising energy prices in Iran, parliament members vote for a “status quo” on the current fuel prices, yet in order to prevent petroleum smuggling all citizens must use a “fule card”. Analysts believe that continuing the current energy policies is like winding a ticking bomb only as the nation has so limited FX resources to spare after US economic sanctions snapback and the administration will soon fail to pay the energy subsidies. Those in favour debate that after all the IRR depreciations along with an unleashed inflation, a rise in fuel prices will only end in widespread social unrest and more pressure on Iranian households.
– Despite the end of US waivers on Iran oil sanctions, unconfirmed sources have that countries like China and India alongside with even some EU nations are to plan schemes to continues oil imports from Iran. This is mostly due to a higher chance of failure in US-China trade deal and the fact that India could not replace Iranian oil for its refineries. Moreover, as India has its general election upcoming, officials told the press that any decisions with regards buying Iranian oil shall be postponed until after the election results.
– Official data from Iran’s Trade Promotion Organization shows that the country’s international trades fell by 13.5% on March/April 2019 contrary to the same period last year. The total amount of Iranian non-oil exports reached USD 2.54 bn including gas condensates. Exports of gas condensates, petrochemical products, industrial products, handicrafts and agricultural goods are down in value by 21.7%, 15%, 28%, 28 and 31% respectively. Only Mines and Ores sector recorded a rise of 43% in export value during the period.
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