Jahangiri: The Cut of Iran's Oil Exports is a False Imagination

While the U.S. government has stated that oil sanctions against Iran will begin on November 4, and Washington will try to convince all customers to completely stop buying oil from Iran by that time, Eshaq Jahangiri called the U.S. plan 'false imaginations.' Eshaq Jahangiri, the First Vice President of Iran, on Tuesday, July 16, pointed out that 'the world needs Iranian oil, and we are capable of exporting our oil,' stating that the government must find solutions with the help of 'the private sector, its partner abroad' to manage the country's economy effectively. Jahangiri had previously identified one of the strategies to counter U.S. sanctions as 'bartering' or exchanging oil for essential goods; a measure that was also implemented during Mahmoud Ahmadinejad's presidency, but reports later emerged about Iran not receiving payment. Yahya Al-Ishaq, the head of the Tehran Chamber of Commerce, stated in 2014 that Iran has 'about $100 billion of frozen currency' in countries like China, India, and Japan, but 'cannot quickly access it.' According to Brian Hook, the U.S. State Department's policy director, the first round of sanctions against Iran, which includes the automotive and gold trade sectors, will begin on July 31, and oil sanctions and related banking transactions will be implemented three months later, on November 4. Steven Mnuchin, the U.S. Treasury Secretary, stated on Thursday, July 12, during a report to the U.S. House Financial Services Committee that if China, Russia, and Europe continue to buy oil from Iran, they will be subject to Washington's sanctions. Reports indicate that the U.S. is also negotiating with some OPEC members, including Saudi Arabia, to compensate for the reduction of Iranian oil production by increasing their own production. According to the International Energy Agency, Iran currently exports 2.5 million barrels of oil and gas condensates daily, which could be reduced by half after sanctions are imposed. The same agency reported last Thursday that Iran's oil exports to Europe halved last month compared to the previous month. Some Iranian domestic media outlets have reported that the guarantee to purchase one million barrels of Iranian oil by the European Union is part of the proposed package from Europe to Iran in new negotiations to preserve the JCPOA. However, this claim has not been confirmed by officials from the Islamic Republic or the European Union. The guarantee of oil sales is also one of the main conditions set by Ayatollah Khamenei, the leader of the Islamic Republic, for remaining in the JCPOA. Bloomberg reported, citing informed sources, that the U.S. government, under pressure ahead of the congressional elections in November, intends to use its strategic and emergency reserves to reduce oil prices. Meanwhile, Hossein Kazempour Ardebili, Iran's representative to OPEC, said on Tuesday that the U.S. should lift Iranian oil sanctions instead of using its strategic oil reserves to keep oil prices low. In recent weeks, government officials have announced the holding of meetings of the 'Resistance Economy Command Headquarters' to counter U.S. sanctions. At the same time, Mohammad Baqer Nobakht, head of the Planning and Budget Organization, recently announced the submission of the first part of a comprehensive proposed plan to counter U.S. sanctions against Iran to the President. The first part of this comprehensive plan includes 12 provisions, including how to provide essential goods and energy, ensuring the livelihood of the poor and reducing absolute poverty, controlling and managing liquidity growth, and creating facilities for public-private participation in construction projects. Nobakht also stated on Tuesday that in the meeting of the Resistance Economy Headquarters, ways to import goods into Iran under sanctions and the use of alternative ports in case one of the ports 'encounters problems' were discussed. Hassan Rouhani, the President of Iran, had previously stated about the impact of U.S. and European sanctions that due to these sanctions, 'an additional $700 was paid out of people's pockets for each container.'