Europe opposes US' role as a economic policeman

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US President Donald Trump's announcement on Tuesday that the US will withdraw from the landmark 2015 accord has sparked worries about fresh tension in the Middle East, sending oil prices to a three and a half year high.

Dan Eberhart, CEO of oilfield services company Canary LLC, drew a direct connection: "Withdrawing from the Iran nuclear deal will support higher oil prices". "If the other contracting parties are unimpressed by Trump's threats, if the agreement simply remains in force without the US, and Iran doesn't, therefore, suffer too much from the USA sanctions, then Trump has just left the table with a lot of noise, but without achieving anything".

Analysts estimate that the re-imposition of sanctions could reduce Iran's exports by between 200,000 and 600,000 barrels per day.

"Europe and China will not fight against the US sanctions".

European and Asian importers may, however, soon find themselves faced with the choice of doing business with the United States or Iran. "I think we're supported on prices until there's more clarity". "It's a UN Security Council Resolution and it belongs to the entire world", said Mogherini, who will chair talks Tuesday with the British, French, German and Iranian foreign ministers in Brussels.

British Foreign Secretary Boris Johnson told his Parliament that Britain will continue to respect the deal as long as worldwide inspectors can verify Iran's compliance.

Analysts said the soaring prices were the result of an expected fall in Iranian oil exports.

Outside OPEC, soaring U.S. crude oil production may also help fill Iran's supply gap, hitting another record last week by climbing to 10.7 million barrels per day (bpd).

The major European countries, China and Russian Federation are all continuing to express their support for the agreement following Trump's decision to end U.S participation and restore sanctions against Iran.

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Japan was a first - and fast - mover on reducing Iranian oil imports in 2012, after the United States tightened sanctions.

This time, European countries do not support US policy.

Iran will focus on new overtures towards China, France, Germany, the Russian Federation, and the United Kingdom who all favor the nuclear deal.

"What made the multi-lateral sanctions enforced during the Obama era so effective was precisely the fact that they were multi-lateral, whereas President Trump's sanctions are not", wrote Chris Lafakis, Moody's chief economist. "When Modi took office, the price for the Indian crude basket was $108.05 per barrel; just before the Iran deal, it was $57.19 per barrel; and by the end of 2015, it was $33.36 per barrel".

Boeing later announced deals with Iran Air and Aseman Airlines totaling 110 planes said to be worth $20 billion.

Refiners are created to use specific qualities of crude, and Korean facilities are geared for Iranian condensate, a super-light form of crude. "History may recall it as the day the United States abandoned its belief in allies". "It depends on the conduct of other governments". "In the case of US light crude, it's not that economical to use at the moment and doesn't fit well with Korean facilities".

"Iran's interests in important areas and issues relevant to the JCPOA, like oil, gas, and petrochemicals sales, as well as banking relations should be clearly and explicitly defined and guaranteed", Rouhani said. He may encourage Saudi Arabia to jack up production to replace any loss in Iranian exports triggered by the sanctions.

A decline in volumes due to the sanctions will add to upward pressure on oil prices, which have gained this year because of an OPEC-led supply-cutting deal and strong global demand.

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