18U.S. proposal to temporarily waive sanctions on Iranian crude sends oil prices lower
18Oil prices reversed course and fell on news that the United States had proposed temporarily waiving sanctions on Iranian crude. In South Korea, the cost pressures on the aviation, chemicals and power industries should be considered alongside refiners’ inventory valuations.
![18U.S. proposal to temporarily waive sanctions on Iranian crude sends oil prices lower/blog-images/gen-814a3a72-3455-4967-97b1-181e5bd447e8.avif)
The United States proposed temporarily waiving sanctions on Iranian crude during the negotiations. The proposal was reportedly included in draft negotiating language with Iran. It was made public 18on that day (local time).
A person close to the negotiating team said the new draft differed from the previous one. The person said the United States had agreed to lift sanctions on Iranian oil during the negotiations. The sanctions relief was described as a temporary measure ahead of a final agreement.
Iran has maintained that all sanctions imposed on it must be lifted. The United States has reportedly proposed only temporarily lifting some sanctions before a final agreement is reached. The two sides remain apart over the scope of sanctions relief.
The sanctions mentioned in this proposal are sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Being designated by the agency can restrict dollar transactions or access to the U.S. financial system. The new wording would temporarily lift some sanctions related to trade in Iranian crude oil during the negotiation period.
After the news emerged, international oil prices turned lower. Prices reflected expectations that more Iranian crude oil could reach the market. The wording makes clear that this is a proposal for a temporary waiver during negotiations, not a final agreement.
In the domestic stock market, oil price movements could affect share prices in the refining, aviation, chemicals, and power sectors. Costs change for industries that buy and use crude oil. Refiners need to consider both the value of their crude oil inventories and refining margins.
Sources: 연합인포맥스
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