U.S. targets Iran-Venezuela trade, tanker market suffers a blow

U.S. targets Iran-Venezuela trade, tanker market suffers a blow

THE Trump administration is considering new sanctions on reportedly 50 oil tankers for working with Venezuela, in order to prevent the trade between Iran and the Latin American country.

 

Earlier this week, a U.S. official told Bloomberg that the sanctions were intended to avoid a U.S. military confrontation with other countries (indicating Iran and Venezuela).

 

Despite their anti-conflict claims, the Trump administration is, in fact, trying to block Iran’s support for Venezuelan people who are struggling with severe fuel shortages amid their country’s economic stagnation.

 

Furthermore, the US actions are impacting the whole global market which is already wrestling with the pandemic. Last weekend, Reuters reported that the global tanker market was getting worried over the news of the U.S. sanctions. The reason for the U.S.’s recent decision could be seen as getting back to Iran who had recently landed a heavy hit on the Trump Administration’s ego by sending five fuel loaded vessels to Venezuela before the eyes of the U.S navy.

 

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The vessels delivered a total of 1.53 million barrels of gasoline and other oil products to the fuel-hungry Venezuelans in May.

 

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Earlier this month, the U.S. Department of the Treasury sanctioned four shipping companies and their crude tankers for continuing to facilitate oil trading with Venezuela.

 

The tension between Washington and Tehran has been escalating since 2018 when U.S. President Donald Trump withdrew from Iran’s 2015 nuclear deal and re-imposed sanctions on the Islamic Republic.

 

Venezuela

 

The Latin American country used to have the cheapest gasoline in the world and supplied fuel with subsidised prices for two decades, however, following the U.S. sanctions almost all of the country’s refineries shut down due to the lack of equipment and prepare maintenance.

 

The Venezuelan government has been forced to implement a rationing system and raise gasoline prices in recent months, while the gas stations in the country are currently under military control.

 

As a result, a black market is formed in which every liter of gasoline is sold for at least two dollars, and people have to wait for hours in long lines to get gas; people are the main victims of U.S.’s disruptive actions. Washington is targeting people by blocking foreign revenues that could be used to import humanitarian goods, including food and medicine, Venezuela’s Foreign Minister, Jorge Ariazza said on Tuesday.

 

Iran-Venezuela trade

 

Iran has repeatedly reported that it is Iran and Venezuela’s legal right to be able to trade with each other and no country can impede the economic transactions between the two countries which are both sanctioned by the U.S. Iran also complained to the United Nations and summoned the Swiss ambassador in Tehran, who represents U.S. interests in the Islamic Republic, over possible measures Washington could take against the Iranian tankers.

 

Later on, in response to the U.S threats for military actions, Iran’s foreign ministry said that any U.S. attempt to halt trade with Venezuela would face an immediate and decisive response.

 

Regarding the recent sanctions, if the Islamic Republic decides to continue trade with Venezuela it would use vessels belonging to its own shipping line most of which are already sanctioned by the U.S., so the new sanctions, despite their negative impacts on Venezuela’s global trade, would not have a huge effect on the trade between Iran and its Latin American ally.

38 Comments

  1. Reply

    Good to hear this

  2. Reply

    Thanks for the update

  3. Reply

    Thanks

  4. Reply

    Thanks for the update

  5. Profile photo ofSIRMUSTY

    Reply

    U.S are just sanctioning countries up and down

  6. Reply

    Nice update

  7. Reply

    Thanks

  8. Reply

    Thank you for the update

  9. Reply

    That’s good

  10. Reply

    Good

  11. Reply

    Ok

  12. Reply

    Ok

  13. Reply

    Good

  14. Reply

    Jumboearn paid platform and news update

  15. Reply

    Good

  16. Profile photo ofSommycruz

    Reply

    Well written

  17. Reply

    Thanks for the information

  18. Reply

    Well written

  19. Reply

    Good information

  20. Reply

    Intelligent update

  21. Reply

    Amazing

  22. Reply

    Informative

  23. Reply

    Very informative

  24. Reply

    Useful

  25. Reply

    This is really bad

  26. Reply

    So bad

  27. Reply

    that’s bad

  28. Reply

    Good sharing

  29. Reply

    US should apply decency

  30. Reply

    Good

  31. Reply

    Thanks you for update

  32. Reply

    Very good

  33. Reply

    good

  34. Reply

    Great one

  35. Reply

    Good

  36. Reply

    Nice information

  37. Reply

    Tnks for this

  38. Reply

    Cool information…..thanks for the update

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