Sanctions against Iran has not had a large impact on the market, the analyst said

© AP Photo / Ebrahim NorooziПункт exchange in Tehran. Archival photoSanctions against Iran has not had a large impact on the market, the analyst said© AP Photo / Ebrahim Noroozi

The entry into force of the anti-Iran sanctions had no significant impact on the market, was a much anticipated event, told RIA Novosti senior economist of the analytical Agency Smith’s Research & Gradings Scott MacDonald.

He added that the sanctions will hinder relations with the European partners and can be a catalyst for growth in oil prices, if there is a more significant geopolitical event.

«The market is almost no, the shock was not. We were expecting this. No major impact on the energy market. Many countries have begun producing more oil. The biggest effect will be on Iran’s economy. It is a weak economy that sanctions have destroyed for decades. And she returns to it,» he said.

The fifth of November came into force the sanctions against Iran. Sanctions would cover oil exports. Washington has previously said it aims to bring Iranian oil exports down to zero and urged its customers to abandon the purchase. On Monday, the Finance Ministry said that the US is making in the sanctions list of more than 700 individuals, organizations, aircraft and ships to Iran.

Thus, as of 17.12 GMT the price of January futures for North sea petroleum mix of mark Brent have grown on 1%, to 73,56 dollars per barrel, the price of December futures for WTI — by 0.62% to 63,53 per barrel. Price has accelerated its growth slightly. Before publishing the message on sanctions, Brent rose in price on 0,45%, WTI — by 0.1%.

But the situation could change if there were other significant events on the oil market. «If we have an unexpected event in the middle East or somewhere else that will affect the oil market, then this (Iranian oil) may again become a decisive factor for the market and Jack up the price of black gold», — he concluded.

MacDonald notes that sanctions can have another effect — will spoil relations with allies in the EU who did not support the US withdrawal from the agreement with Iran.

The President of the United States Donald trump announced in may that Washington is out of agreement with Iran on its nuclear program. He also reported the return of all sanctions against Iran including secondary, that is, against other countries doing business with Iran. Once again, the U.S. has enacted on August 7 some of the sanctions against Iran. More substantial sanctions, which will cover the export of oil, entered into force on 5 November. Washington has said it aims to bring Iranian oil exports down to zero and urged its customers to abandon such purchases.

Iran and «six» of international mediators (Russia, USA, Britain, China, France, Germany) July 14, 2015 reaching an agreement on the settlement of the longstanding problem of the Iranian atom: adopted a Joint comprehensive plan of action (SVPD), which was removed from Iran’s previously imposed economic and financial sanctions by the UN security Council, US and EU. The President of the United States Donald trump announced in may that Washington is out of agreement with Iran on its nuclear program. Trump also announced the restoration of all sanctions against Iran including secondary, that is, against other countries doing business with Iran.

On the sidelines of the UN General Assembly «five» of international mediators and Iran chaired by head of the EU diplomacy Federica Mogherini confirmed that the country complies with the nuclear deal. Also, the EU announced the creation of a special mechanism, which will allow European companies to continue business with Iran, despite the US withdrawal from the agreement and the threat of us sanctions. But the United States has warned that it will impose sanctions against any companies who try to break their regime.Sanctions against Iran has not had a large impact on the market, the analyst said© RIA Novosti, Infographicsrussia against Iran

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