Traders Look To Replace Iranian Crude Oil As Sanctions Loom Again

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On Tuesday, US President Donald Trump announced his decision to exit the deal.

"It is totally unclear what the United States envisages as an alternative to the deal that prevents Iran from developing nuclear weapons while being able to verify compliance", Maas added.

The 2015 nuclear deal imposed restrictions on the Islamic Republic's nuclear program in return for the lifting of most of the USA and worldwide sanctions against Tehran.

Mr Trump on Tuesday withdrew the USA from a six-nation agreement with Teheran that limits Iran's nuclear work in return for relief from economic sanctions.

The JCPOA deal, signed by Iran and P5+1 powers (China, France, Russia, the United Kingdom, the U.S., plus Germany) in 2015 after years of hard negotiations, saw global sanctions on Tehran lifted in exchange for Iran curbing its controversial nuclear program.

The US commitment to fighting climate change - forged under former president Barack Obama - was reversed in June 2017, when Trump announced he would withdraw America from the Paris pact.

But Iran's supreme leader, Ayatollah Ali Khamenei, doesn't appear to have much faith.

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Iran's supreme leader has challenged President Donald Trump over America pulling out of nuclear deal, saying: "You can not do a damn thing!"

Khamenei on May 9 said that US actions show it cannot be trusted to honor agreements, and he also questioned whether USA allies in Europe can be trusted either.

The European countries in the deal - the UK, France and Germany - have been quick to say they still back the deal.

Trump's action will reinstate economic sanctions against Iran, pledge new ones and increase the risk of confrontation with an Iranian regime that has shown little interest in peaceful cooperation.

He said the TPP - which has yet to take effect but has been signed by participating nations - left the United States exposed to unfair competition and was a bad deal.

Taken overall, transatlantic tensions will now jump again following Trump's decision over Tehran and this could make for a tricky G7 summit next month.

While the chants of "Death to America" were few, Iranians are sincerely angry over Trump's decision and many are siding with the hard-liners, who have always been suspicious of the West.

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Now, Mr. Trump has decided and no one knows what's next.

Iranian President Hassan Rouhani ordered his diplomats to negotiate with their European, Russian and Chinese counterparts, though he threatened that Iran would commence unlimited uranium enrichment if the continued negotiations do not yield results within several weeks.

Media captionAnalysis: What's next for the Iran deal?

"The impact (of new sanctions) in India will be there, but not so high", said R Ramachandran, head of refineries at state-owned oil firm Bharat Petroleum Corp.

Mr. Trump said he'd reimpose sanctions - but it seems the Europeans won't.

Last week, a senior Israeli intelligence official was in Ottawa to garner support for his government's opposition to the Iran agreement.

Johnson had been involved in negotiations with European countries working to save the deal.

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