Rouhani on Oil Sanctions: If You Can, Go Ahead and See the Results

The President of Iran, Hassan Rouhani, during a meeting with a group of Iranians residing in Switzerland, referred to statements by American officials about efforts to cut Iran's oil exports, warning, "If you can, go ahead and do it to see the results." According to Iranian news agencies, Rouhani stated on July 2 that "the Americans claim they want to completely stop Iran's oil exports. They do not understand the meaning of this statement, as it makes no sense for Iranian oil not to be exported while oil from the region is exported." He added, "If you can do it, go ahead and see the results." Rouhani did not provide further details on this matter. A senior U.S. State Department official stated on July 5 that countries buying Iranian oil must stop all imports from this country starting in November (November 13) when U.S. sanctions against Tehran are resumed. The day after this statement, a U.S. State Department official explained that Washington is trying to convince as many customers as possible to completely cut oil purchases from Iran. The names of the American officials involved in discussions with the media were not disclosed. On July 9, U.S. President Donald Trump warned that European companies that trade with Iran while ignoring U.S. sanctions will be subject to sanctions. During severe sanctions against Iran, prior to nuclear negotiations between Tehran, the Obama administration, and five other powers, Iran's oil exports had reached one of their lowest points, at 700,000 barrels per day in the summer of 2013. At that time, it was also reported that the Obama administration was trying to reduce this figure to even 500,000 barrels. Currently, international organizations and media say that with the return of sanctions, Iran's daily oil exports this year are likely to decrease to 700,000 barrels. Tehran officials have made efforts in recent weeks to maintain economic interactions with Europe and Asia, including in the oil sales sector, which the Iranian economy heavily relies on. However, various reports about the results of these efforts have been published, which do not necessarily provide a clear picture of the upcoming conditions. For example, the Indian foreign minister told his Iranian counterpart that his country would not comply with unilateral sanctions, but reports have emerged indicating that Delhi has asked refineries to prepare for a "significant reduction or cessation of oil purchases from Iran." Last month, Reuters reported that Iran had asked Beijing for guarantees to continue buying oil at current levels, but both the Chinese government and its refineries have refused to provide such guarantees. It has been reported that Japan and South Korea, two major buyers of Iranian oil alongside India and China, are also negotiating with Washington. Meanwhile, in recent months, it has become clear that some major European companies, such as France's Total, Italy's Eni, Denmark's Maersk shipping company, and several others, have ended their transactions with Iran due to concerns over U.S. sanctions. Aircraft manufacturers Boeing, Airbus, and ATR have also stated that they will no longer deliver planes to Iran. The consequences of the U.S. withdrawal from the JCPOA and the return of sanctions, alongside other issues including the structure of the Iranian economy, have already impacted the currency and gold markets in the country, causing severe tensions and fluctuations. This situation has led to protests and gatherings. Environmental crises, shortages, or the quality of drinking water are other challenges that have led to protests in some regions, including Khuzestan province. Protests have taken on political dimensions in various cases, with some protesters chanting against the leadership or protesting spending in other countries instead of addressing domestic problems. Rouhani's trip to Switzerland and Austria began on July 2, and it has been reported that the European proposal to preserve the JCPOA will be a major focus of his discussions with officials from these two countries. The Iranian president met and discussed with his Swiss counterpart in Bern on Monday evening.