Monday, November 25, 2013

Iran Nuke Deal Still Traps Most Iranian Foreign Exchange Oil Earnings

Ed Yardeni has the best summary:
The nuclear deal signed on Sunday with Iran will not allow any more Iranian oil into the market, nor let western energy investors into the country. However, it does freeze US plans for deeper cuts to Iranian crude exports. "In the next six months, Iran's crude oil sales cannot increase," according to a fact sheet posted by the White House on the US State Department's website on Sunday.

US sanctions effectively bar Iran from repatriating earnings from oil exports, forcing customers to pay into a bank in their country. Washington estimates that Iran has around $100 billion in foreign exchange earnings trapped in such accounts. Under the terms of the deal, Iran will be allowed access to $4.2 billion of oil export revenues. But nearly $15 billion still will flow into accounts overseas over the next six months, according to the US government

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