The Trump administration won’t be issuing any more waivers to importers of Iranian oil:
The Trump administration is poised to tell five nations, including allies Japan, South Korea and Turkey, that they will no longer be exempt from U.S. sanctions if they continue to import oil from Iran.
U.S. officials say Secretary of State Mike Pompeo plans to announce on Monday that the administration will not renew sanctions waivers for the five countries when they expire on May 2.
Refusing to offer new sanctions waivers is the latest sign that Trump is once again giving in to the most extreme Iran hawks. When sanctions on Iran’s oil sector went into effect last November, the administration initially granted waivers to the top importers of Iranian oil to avoid a spike in the price of oil, but that is now coming to an end. The economic war that the U.S. has been waging against Iran over the last year is about to expand to include some of the world’s biggest economies and some of America’s leading trading partners. It is certain to inflict more hardship on the Iranian people, and it will damage relations between the U.S. and other major economic powers, including China and India, but it will have no discernible effect on the Iranian government’s behavior and policies. India, China, and Turkey are practically guaranteed to ignore U.S. demands that they eliminate all Iranian oil imports.
Josh Rogin reported on the same story:
The decision to end waivers has implications for world oil markets, which have been eagerly anticipating President Trump’s decision on whether to extend waivers. The officials said market disruption should be minimal for two reasons: supply is now greater than demand and Pompeo is also set to announce offsets through commitments from other suppliers such as Saudi Arabia and the United Arab Emirates. Trump spoke about the issue Thursday with the UAE’s Crown Prince Mohammed bin Zayed al-Nahyan.
Between the administration’s Venezuela and Iran oil sanctions and increased instability in Libya (also supported by the Trump administration), oil prices are nonetheless likely to rise. Even if they don’t, Trump’s Iran obsession is causing significant economic dislocation for no good reason as part of a regime change policy that can’t and won’t succeed. It cannot be emphasized enough that the reimposition of sanctions on Iran is completely unwarranted and represents a betrayal of previous U.S. commitments to Iran and our allies under the Joint Comprehensive Plan of Action. The decision to refuse any new sanctions waivers is a clear sign that the most fanatical members of the Trump administration have prevailed in internal debates and U.S. Iran policy is held hostage to their whims.