Russian diplomat comments on U.S. withdrawal from Iran nuclear deal

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This week, European leaders urged Iran to continue to abide by the agreement to freeze its nuclear programme, despite Trump's stance.

Announcing Washington's exit from the deal signed between Iran and the six world powers (Britain, China, France, Germany, Russia and the US) on Tuesday, US President Donald Trump said he will not sign the waiver of nuke-related sanctions against Iran but re-impose sanctions lifted under the accord against Tehran and nations it has business links with. The United States is part of an agreement with other International Energy Agency countries to release strategic stocks, if needed, to offset supply disruptions, and the United States benefits from those collective actions regardless of how much oil it imports. He described it as "decaying and rotten", adding that the deal was "an embarrassment".

Washington has given European firms doing business in Iran up to six months to wind up investments or risk United States sanctions and they are also forbidden from signing any new contracts with Iran. According to Bloomberg, the aircraft orders had the potential to build Tehran into an aviation hub that "could better compete with Dubai and Qatar".

France's Total became the first Western energy firm to sign a deal with Iran after the easing of global sanctions in 2016, agreeing to develop Phase 11 of the South Pars offshore gas field with a total investment of $5 billion.

French exports to Iran doubled to 1.5 billion euros a year ago, driven by sales of aircraft and automobile parts, according to customs data.

Boeing later struck a deal with the country's state-owned carrier for 80 aircraft, including Boeing 737s and 777s, worth $17 billion at list prices. However, list prices are routinely exaggerated, and aviation consultancy Avitas valued the deals at $9.5 billion, given normal discounts.

However, neither deals look likely to happen.

Saudi Arabia is ready to offset any supply shortage but it will not act alone to fill the gap, an OPEC source familiar with the kingdom's oil thinking said on Wednesday.

"I believe America's withdrawal from the deal would lead to no significant impacts with regards to Iran's exports of oil", Zangeneh added.

Treasury Secretary Steven Mnuchin said the penalties targeted those who had funnelled millions of dollars to the group, funding its "malign activity". It is also possible that the effect of the sanctions has already been factored into prices, so any immediate impact will be limited.

Both Le Maire and Germany's finance minister Olaf Scholz had spoken to their U.S. counterpart Steven Mnuchin, urging him to consider exemptions or delays for companies already present in the country. Although Airbus is European, 10% of the components and labor used to build its aircraft originate in the US.

He said that "These contracts will be finalised under the current challenging circumstances by mid-Iranian year (October)".

Companies would have to wind up investments by November or face USA sanctions. "This will take some time".

Jean-Claude Juncker, the president of the European Union's executive body, said the U.S.

We expect bunker prices will continue upward evolution next week.

The EIA on Tuesday raised its forecast for US output in its monthly report to 12 million bpd late next year. "That is the first stage", a senior State Department official said of plans for talks by Pompeo and his chief Iran negotiator, Brian Hook.