Iran's vice president acknowledged on July 10 that U.S. sanctions would hurt the economy, but promised to "sell as much oil as we can" and protect banking.
Eshaq Jahangiri said Washington was trying to stop Iran's petrochemical, steel and copper exports. "America seeks to reduce Iran's oil sales, our vital source of income, to zero," he said, according to Fars news agency.
"It would be a mistake to think the U.S. economic war against Iran will have no impact," Jahangiri added.
President Donald Trump said in May he would pull the U.S. out of an international accord under which Tehran had agreed to limit its nuclear development in exchange for sanctions relief.
Trump said he would reintroduce sanctions and Washington later told countries they must stop buying Iran’s oil from Nov. 4 or face financial consequences.
On July 10, the U.S. ambassador to Germany also called on Berlin to block an Iranian bid to withdraw large sums of cash from bank accounts in Germany.
Jahangiri said Iran’s foreign ministry and the central bank have taken measures to facilitate Iran’s banking operations despite the U.S. sanctions. He did not elaborate.
European powers which still support the nuclear deal say they will do more to encourage their businesses to remain engaged with Iran—though a number of firms have already said they plan to pull out.
Foreign ministers from the five remaining signatory countries to the nuclear deal—Britain, France, Germany, China and Russia—offered a package of economic measures to Iran on July 6 but Tehran said they did not go far enough.
"We think the Europeans will act in a way to meet the Iranian demands, but we should wait and see," Jahangiri said.
He added that the U.S. pressure on Iran came as the U.S. launched an "economic war with China and even its allies", referring to trade tensions between Washington and many of its main trading partners.
He also accused Washington of trying to use the economic pressure to provoke street protests in Iran.
A wave of anti-government demonstrations against economic hardship and alleged corruption engulfed cities across the country in late December and early January.
Recommended Reading
Veriten’s Arjun Murti: Oil, Gas Prospectors Need to Step Up—Again
2024-02-08 - Arjun Murti, a partner in investment and advisory firm Veriten, says U.S. shale provided 90% of global supply growth—but the industry needs to reinvent itself, again.
Vitol: Oil Demand Peaks in 2030s, Saudis to Quit Supply Cut This Year
2024-01-18 - Vitol executive Ben Marshall told oil and gas producers at IPAA’s Private Capital Conference that Saudi Arabia is losing patience. Also, the energy transition will take longer than expected.
Sempra Targets Summer 2025 for Commercial Start of ECA LNG Phase 1
2024-03-06 - Sempra is targeting the summer of 2025 as the commercial operations date for its 3.25 mtpa (0.43 Bcf/d) nameplate capacity Energía Costa Azul LNG Phase 1 project, located in Ensenada in Baja California, Mexico.
4Q Deal-Making Was $144B; What’s Next?
2024-01-23 - U.S. takeout targets are few now. Operators may go abroad to add reserves, according to Enverus. Private E&Ps may pick up offshoots from portfolio pruning.
Kimmeridge Activates on SilverBow: A Battle for South Texas Gas
2024-03-01 - Investment firm Kimmeridge is looking for more natural gas production for its own E&P to participate in the Gulf Coast LNG market. SilverBow Resources has gas.