Business
Iran Can Now Sell More Oil but It Can’t Get Paid
U.S. sanctions waivers allowing the sale of Iranian oil already at sea are unlikely to free up more barrels because Tehran can’t get paid for them, said Fernando Ferreira, a geopolitical analyst at Washington-based consulting firm Rapidan Energy.
The exemption announced late Friday by the U.S. Treasury temporarily allows the sale, delivery and offloading of sanctioned Iranian oil loaded onto vessels before March 20, with the intention of easing rising oil prices. But it doesn’t include waivers on a ban on banking with Iran. “There is no point in Iran going through this channel when its payment channels with China are working,” Ferreira said.
Iran ships most of its oil exports to China, which pays for it through alternative channels. Asian buyers such as India, Japan, South Korea, Thailand or Vietnam could seize the waiver opportunity to scoop small quantities, Ferreira said.
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