US sanctions on Iran oil signals geopolitical climate

World
Europe

01:04

After the reimposition of sanctions in August, the Trump administration is pressuring its allies to cease all oil business with Tehran.

Some nations have succumbed to US pressure, while others have devised ways to bypass the impending US sanctions due to take effect in November.

South Korea in August became the first country to fully implement the US' demand of zero oil imports from Iran, and the country was also the third-largest oil market for Iran, after China and India.

Japan was next on the list. In September, the country decided to halt all of its oil imports from Iran. Though the Abe government had sought a waiver from the US, the American-side rejected that request.

India too is under extreme US pressure to follow the zero-oil-from-Iran diktat. As Iran's second-largest oil customer, India is also seeking a special waiver from the US, but the Trump administration remains non-committal.

Last month, Iran along with China, Russia and the EU agreed to establish a new special purpose vehicle, which is aimed at side-stepping US sanctions.

As Europe tries to keep the Iran nuclear deal afloat, the continent's biggest companies like Renault, Airbus and Peugeot have already suspended operations with Iran, dealing a huge blow to the struggling Iranian economy.