United States Allows Iranian Oil Exports... Trump Unveils an 'Economic Carrot'

【Financial News, New York = Lee Byung-chul】As the outline of a ceasefire agreement between the United States and Iran comes into view, a large-scale package of economic incentives for Iran is also being unveiled. The United States plans to allow Iranian oil exports as soon as the deal is signed, while also easing some sanctions on finance, transportation and insurance. However, it attached a condition: further relief will depend on whether the Strait of Hormuz is reopened and progress is made in nuclear talks.

The Wall Street Journal (WSJ) reported on the 16th, citing sources, that the United States will immediately allow Iran to resume sales of oil and fuel under an agreement to end the war.
As a result, sanctions waivers related to oil sales are expected to take effect at the official signing this week. The easing measures also cover essential services such as banking, shipping and insurance that support oil trade.
Signs of change have already emerged. United Against Nuclear Iran (UANI), a nonprofit group, said an Iranian supertanker carrying crude oil departed Chabahar Port, passed through a U.S. blockade zone, and then sailed into the Gulf of Oman with its AIS tracking system turned on. It was the first such case since the U.S. blockade began in April.
Still, the United States made clear that sanctions relief will not be unlimited.
A senior U.S. official said, "Initial sanctions relief will be provided, but whether it continues will depend on Iran's performance in carrying out its commitments." He added, "The key issue is how faithfully Iran follows U.S. demands, including reopening the Strait of Hormuz and advancing nuclear negotiations."
He also said, "Immediate access to tens of billions of dollars in frozen assets will not be allowed."

Economic concessions for Iran are also a politically sensitive issue for President Trump.
Trump has strongly criticized the Barack Obama administration in the past, saying it gave cash to Iran after the 2015 nuclear deal, the JCPOA. During his first term, he also withdrew the United States from that agreement.
Even so, the White House appears to have concluded that this time it needed an 'economic carrot' in the form of allowing oil exports.
Farzin Nadimi, a senior fellow at The Washington Institute for Near East Policy, said, "Allowing Iran to export oil means giving up one of Washington's key bargaining chips." He added, "But the White House appears to have judged this as an unavoidable choice to secure the reopening of the Strait of Hormuz."
He said, "Without such incentives, it would have been difficult to keep Iran at the negotiating table." He added, "If necessary, the United States can restore the blockade at any time."
Shin Bet, a researcher at the Institute for National Security Studies (INSS) in Tel Aviv and a former Mossad officer, also assessed that "allowing oil exports would provide Iran with tangible economic benefits while also helping stabilize global oil prices."
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