What are the US sanctions on Iran?

Standing true to his rhetoric, US President Trump reimposed sanctions on Iran which were lifted-off by his predecessor President Obama. Trump has warned the global community that anyone doing business with Iran will not be doing business with the US.

Donald Trump tweeted, “The Iran sanctions have officially been cast. These are the most biting sanctions ever imposed, and in November they ratchet up to yet another level... I am asking for world Peace, nothing less!”

Anticipating the imposing of sanctions, India along with countries like Japan, South Korea have already requested waivers allowing for a gradual reduction of trade rather than a outright freezing of business transactions.

The sanctions ban countries and companies from trading with Iran in gold, precious metals as well as other metals like aluminum, steel and also coal and industry-related software. Those transacting in Iranian rial, Iranian sovereign debt will also be facing trade barriers. Iran will be barred from purchase or acquisition of US dollars, car parts, commercial aircraft and other equipment. Also, Iran's exports of cars, carpets and pistachios will suffer due to these sanctions.

Countries and organisations disregarding these sanctions are penalised by the US admin and are denied access to the US market.

In January 2016, the then US President Barrack Obama had lifted-off the sanctions as part of the US-Iran nuclear deal. The current US admin wants countries to wind down their oil imports from Iran. Reciprocally, India's oil imports from the Islamic nation was down by 15.9 per cent in June. Many multinational companies having operations in Iran have already started winding down.

On the other hand, the European Union is formulating ways to counter Trump’s sanctions on Iran, while Russia and China are also expected to oppose the sanction.

Meanwhile, as an immediate reaction to the sanctions, Indian oil marketing companies (OMC) stocks were trading in the negative territory in Wednesday's trade. Top state-owned OMCs, HPCL closed at Rs. 288.40 per share, BPCL at Rs. 395.30 and Indian Oil at Rs. 166.50 down by 1.94 per cent, 1.48 per cent, 0.95 per cent, respectively, while private refiner Reliance Industries was at Rs. 1,184.00 per share, down by 0.63 per cent.

Also, the benchmark indices BSE Sensex and Nifty50 took a breather and closed flat after posting two consecutive days of gains. Sensex closed at 37,665.80, down by 0.07 per cent and Nifty at 11,389.45, down by 0.02 per cent.