On Tuesday, President Donald Trump‘s administration reinstated sanctions targeting the Iranian government’s purchase of U.S. dollars, Tehran’s trade in gold and other precious metals, and it’s automotive industry.
The U.S. president also warned that unless Iran — which is a member of the Organization of the Petroleum Exporting Countries (OPEC) — complies with U.S. demands, Washington will look to impose far tougher measures in early November.
The second batch of potentially more damaging sanctions will target Iran’s port operators, as well as it’s energy, shipping and shipbuilding industries. Petroleum-related transactions and dealings between foreign financial organizations and the Central Bank of Iran will also be impacted.
“Certainly in the short term, there are no serious issues about supply because we have seen oil production in Saudi Arabia increase, in Russia increase and in one or two other Gulf countries,” Neil Atkinson, head of the oil industry and markets division at the IEA, told CNBC’s “Street Signs” on Friday.
“But as we say in the report, although things may be cooling down a little bit right now, we cannot get away from the fact that later in the year … We could be in a different situation where supply may be more constrained and there would then perhaps be a risk of the oil price increasing,” he added.