PHOTO: An oil tanker near the port of Bandar Abbas in southern Iran


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Saudi Arabia is trying to restrict Iran’s economic recovery by limiting the Islamic Republic’s oil exports, according to traders and shipbrokers.

Following the implementation of the July 2015 nuclear deal in January, Iranian officials have said that the lifting of sanctions will mean a quick rise in exports. First Vice President Eshaq Jahangiri has declared that sales have already risen from about 1.4 million barrels per day to 2.2 million bpd — industry analysts put the actual figure at a far more modest 1.6 million bpd.

The Saudi measures, revealed by the Financial Times, include restrictions on Iranian ships entering ports in Saudi Arabia and Bahrain.

The oil tanker association Intertanko and other firms say no formal notice has been given by Saudi Arabia, but uncertainty is making some shippers less willing to lift Iranian crude.

”It’s seen as an unknown risk,” said one shipbroker. “No one wants to disrupt their relationship with the Saudis.”

Iran has had some success with its four largest customers, all in Asia. South Korea and India have significantly increased purchases, while China and Japan maintained levels, bringing Iranian exports to a two-year high.

However — in sharp contrast to proclamations from Iranian officials — Iran has struggled to renew exports to Europe. Only eight tankers, containing 12 million barrels, are scheduled to move by mid-April.

Part of the restriction on exports to Europe is lack of Iranian access to facilities operated by the Arab Petroleum Pipeline Company. The company is 50% owned by Egypt, with Saudi Arabia, Kuwait and the UAE together owning 45%.

Because of the bottleneck, the amount of oil stored at sea off the coast of Iran has risen by 10% since the start of the year, and now stands at more than 50 million barrels.


Saudi Arabia Bans Iran’s Mahan Air

In the latest tension between Riyadh and Tehran, Saudi Arabia has banned Iran’s Mahan Air from flying into the kingdom.

The General Authority of Civil Aviation issued the order Monday night, claiming “systematic violations” of safety regulations and laws.

The US Treasury Department imposed sanctions on Mahan Air in 2011, alleging that it assists the Revolutionary Guard and Lebanon’s Hezbollah.

Tensions between Sunni-ruled Saudi Arabia and Shiite Iran remain high after the kingdom executed a Shiite cleric in January and Iranian protesters stormed Saudi diplomatic posts.


Deputy Foreign Minister: US Hindering Economic Recovery

Deputy Foreign Minister Abbas Araqchi has warned that the US is hindering Iran’s economic recovery by limiting the removal of sanctions after implementation of the July 2015 nuclear agreement:

American sabotages have made work difficult…. Some big banks are still afraid….One of the problems is the lack of trust. The Americans do not allow trust to be created.

The Westerners pledged to remove the oil-related sanctions but didn’t pledge to find us customers to buy oil. Right now, we are selling about 1.7 million barrels of oil. Returning to the previous level requires much time.

Hitting back at critics who have said the Government was duped by an American refusal to lift sanctions, Araqchi replied:

We have said from day one that American primary sanctions and non-nuclear sanctions will remain in place….I do not know why so many are interested in the dollar and continue to [ask] why the sanctions have not been removed. [Dollar transactions] are part of primary sanctions. This issue must be negotiated bilaterally with America…and [such negotiations] are not our desire.

The Supreme Leader renewed pressure on President Rouhani last month by expressing his anger at continued restrictions on Iran’s banking and financial sector. He indicated that economic policy may be taken from the Government with the pursuit of a “Resistance Economy” for self-sufficiency.

The US Treasury has said that it is considering authorization of Iran to make some dollar transactions, but so far the Obama Administration has not implemented the measure.

Araqchi followed the Supreme Leader’s injunction not to pursue matters directly with Washington,
“We do not desire bilateral negotiations with America, nor will we allow such negotiations to occur.”

The Minister repeated the Iranian line that ballistic missile tests, which have prompted new US sanctions, are not banned by a UN Security Council resolution.

He said that, to deal with the US, “If we want a problem to go away quickly, we must create confidence….We must prepare an atmosphere in such a way that the Americans cannot take advantage.”