Minister brushes off rumors on oil sales ban, tanker seizures
Iran’s oil minister dismissed on Wednesday the recent rumors about the potential repercussions of longstanding Western embargo on the country’s petroleum industry, saying there is no problem concerning the sales of national oil and its export.
Mohsen Paknejad added that his colleagues have devised methods and solutions appropriate to the current restrictions, and through such solutions, no problem will arise.
On the sidelines of a rally marking the 47th anniversary of the victory of Iran’s Islamic Revolution, he said Iranians have always shown that they stand by the ideals of the Islamic Revolution, adding that the rally’s message is, in fact, a declaration that encroachment upon Iran’s soil is no more than a dream or illusion for them.
On Tuesday, it was rumored that the Trump administration officials had discussed whether to seize tankers involved in transporting Iranian oil but had held off over concerns about Tehran’s near-certain retaliation and the impact on global oil markets, according to the Wall Street Journal.
The US has seized several ships that have carried Iranian oil as part of its two-month-old blockade of sanctioned tankers serving Venezuela. The tankers, which make up the so-called shadow fleet, help transport oil from numerous sanctioned countries to China and other buyers.
A move by the US to block other sanctioned ships from loading oil in Iran faces many obstacles, some of the officials said.
Iran is likely to respond to a stepped-up US crackdown by seizing tankers carrying oil from US allies in the region or even by mining the Strait of Hormuz, the narrow exit from the Persian Gulf through which as much as 25% of the world’s petroleum supply passes. Either move is likely to drive up oil prices sharply, risking a political firestorm for the White House.
While those retaliations have not taken place either, oil benchmarks, as expected, were rising Wednesday after the Trump administration officials said the US is considering seizing additional tankers involved in transporting Iranian oil.
Brent crude futures were up 1.5% to $69.8 a barrel early Wednesday, while West Texas Intermediate futures rallied 1.6% to $65.
Earlier, the head of the energy committee of Iran’s Parliament emphasized that even if all American ships are stationed in the Persian Gulf, the path of Iran’s oil exports will not be halted.
“Considering that we have been under sanctions from the beginning of the Islamic Revolution and numerous obstacles were placed in our way, we have fully learned the methods of bypassing sanctions,” Mousa Ahmadi said in an interview with ISNA.