Why Iran Is Threatening to Close the Strait of Hormuz

Eileen GuzmanJul 08, 2018

Iran has suffered worsening financial turbulence since US President Donald Trump abandoned the accord in May.

Iranian President Hassan Rouhani had Tuesday labelled the United States push to cut Iran's oil production to zero "a baseless fantasy" and an attempt to drive "imperialist policy in flagrant violation of worldwide law".

In calls Thursday with German Chancellor Angela Merkel and French President Emmanuel Macron, Iranian President Hassan Rouhani said since the US withdrawal "Iran has been dealing with economic issues and problems in banking relations and oil" and that foreign companies were "skeptical" about continuing their business, Iran's semi-official Mehr news agency reported.

Rouhani made the remarks in a telephone conversation with German Chancellor Angela Merkel late on Thursday.

"Unfortunately the proposed package lacked operational solution and specific method for cooperation, and featured just a set of general commitments like the previous statements by the European Union", the Iranian leader was quoted as saying on his official website. "It only included some general promises like previous European Union statements", Tasnim quoted Rohani as saying.

Iran has threatened to withdraw from the deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), if it does not receive enough economic guarantees from Europe.

Three European nations along with Russian Federation and China met with Iran to offer economic benefits and assurances that would lessen the blow of sweeping United States sanctions, two months after President Donald Trump walked away from the landmark nuclear deal.

Speaking at a joint press conference with his Swiss counterpart, Alain Berset, in Bern on Tuesday, Iranian President Hassan Rouhani lashed out at American officials for threatening to stop Iran's oil exports, saying they would never be able to carry out such a threat.

U.S. secondary sanctions on firms dealing with Iran would "snap back" in August for trade in cars and metals and in November for oil and banking transactions, the State Department official says.

It must activate a "blocking statute" - legislation banning EU companies from complying with USA sanctions on Iran - and allow the European Investment Bank (EIB) to do business in Iran, he said.

Iran's Revolutionary Guards said this week that the country would prevent any oil from being exported through the Strait of Hormuz, a shipping lane between Iran and Oman.

Iran's economy is already suffering from the sanctions that Washington re-imposed after walking away from the nuclear agreement, and the USA has threatened to punish companies from other nations that continue doing business with Iran.

"It would be meaningless that Iran cannot export its oil while others in the region can". Washington has since told countries they must stop buying the OPEC producer's oil from November 4 or face financial consequences.

In light of Washington's push on sanctions, European leaders have said they would do their utmost of maintain business ties with Iran but it would be hard for them to make any "guarantees". The bank now has a policy of not lending to Iran and other countries listed as high-risk by a global terrorism financing watchdog. Further sanctions on oil and transactions with the central bank of Iran will come into effect November 6.

Related Articles:



« Previous article
Next article »


Popular Pages

Two More Britons Poisoned by Nerve Agent Used on Ex-Spy
The Swindon Advertiser reported tonight that the patient had now been moved to Salisbury District Hospital . Uglev and other experts say it may never be possible to determine the nerve agent's origin.

Manu Ginobili, Gregg Popovich wish Tony Parker the best in Charlotte
Duncan has retired, Parker is now gone and Ginobili's status for next season is unknown. The new coach, James Borrego, is a former Spurs assistant who knows Parker well.

Klamathon Fire ignites in Hornbrook, prompting I-5 closure
A situation summary from Cal Fire Saturday morning noted "extreme fire behavior with movement in multiple directions". Authorities said the blaze started with a house fire and gusty winds reportedly were pushing the flames.

Hurricane Beryl takes aim at eastern Caribbean
This disturbance is forecast to move westward or west-northwestward at 15 to 20 miles per hour over the tropical Atlantic Ocean. A tropical depression strengthened into Tropical Storm Beryl on Thursday afternoon, the National Hurricane Center said .

England ousts Colombia in shootout thriller
Beat Sweden, and England has a game against Croatia or host nation Russian Federation to reach a first World Cup final since 1966. Or, at half-time, Raheem Sterling appearing to be on the end of a deliberate elbow from one of the Colombian coaching staff.

President Donald Trump to meet with Queen Elizabeth II but avoid protesters
Later Friday the president will travel to Windsor Castle, west of London, for an audience with Queen Elizabeth II . I would also say that I think the majority of British people understand the importance of the UK-US alliance.

Talks with Pompeo were 'regrettable,' North Korea says
North Korea committed at the summit to the "immediate repatriation" of remains already identified, but that hasn't happened yet. Pompeo left the negotiations venue to make a secure phone call to update President Donald Trump on the talks, the report said.

Croatia break Russian hearts in penalty shootout
And it was Lovren's team that prevailed 4-3 in the shootout when Barcelona star Ivan Rakitic netted the decisive kick. Vida was booked moments later after removing his top during his goal celebration.

Polish presidency says top Supreme Court justice to retire
On Tuesday, the dispute triggered protests in front of the court in the capital, Warsaw , which Gersdorf also attended. Earlier the government already took control of ordinary courts and the constitutional court.

Three travel bloggers killed in waterfall accident
Her boyfriend and another hiker jumped in to try to save her but they were all swept over the edge, Willcox said. A fourth friend who witnessed the accident then ran down the mountain to call for help.