Tehran, Nov 3: The much-anticipated sanctions on Iran imposed by Donald Trump-led US will come into force on Monday, November 5, and markets and experts across the globe are waiting to see how the impact unfolds.
Trump pulled the US out of the multilateral nuclear deal with Iran, which was reached during the time of his predecessor Barack Obama, in May this year alleging that Tehran was taking undue advantage of the pact. Washington thereafter has been eyeing complete isolation of Iran from the global markets over its alleged pursuit of nuclear weapons.
The complete economic sanction on Iran was aimed to blocking the country's access to international trade and finance, including billions of dollars in oil revenues. Removing Iran from the list of oil suppliers would mean the global market would face challenges in making up for the lost source. Though the OPEC platform, which includes Iran's regional foe Saudi Arabia, has said it has increased oil production to make up for Tehran's loss, experts have said that it is still far from the required amount to balance the market.
Iran is the second largest producer of crude in the OPEC after Saudi and about four per cent of global oil supply originates from the former. The danger of losing the substantial amount drove oil prices to go up to four-year high at USD86 a barrel early October.
The US had earlier sought all countries, including India, to completely halt purchase of oil from Iran by November 4. Now, it has softened its stand a bit by allowing eight nations - India being one among them - to continue buying oil from the West Asian country after the crippling sanctions are reimposed.