Saudi Arabia committed to oil market stability

Saudi Arabia committed to oil market stability

President Donald Trump's announcement of the U.S. pulling out from the Iran deal and his decision to re-impose sanctions on the key crude oil producer will exert pressure on fuel prices and affect the Indian economy on the downside, Assocham said today. The three leaders urged Washington to "avoid taking action which obstructs its full implementation by all other parties to the deal".

The multilateral agreement was brokered in July 2015 by former President Barack Obama's administration, China, Russia, Germany, France, Britain and the European Union - all of whom expressed disappointment at Trump's move to withdraw.

But the U.S. president Tuesday pulled Washington out of the 2015 accord with Teheran, pouring scorn on the "disastrous" agreement and describing it an "embarrassment" to the United States - although European signatories and the IAEA say Iran has complied with its obligations.

US officials in announcing the renewed sanctions said they expected USA allies in the oil-rich Persian Gulf region to make up Iran's shortfall in production, in a move they said would soften the impact of the sanctions on global oil prices.

He said the USA - along with Saudi Arabia - had hoped to wage war on Iran but had shifted its focus to economic warfare after the military option had proven unfeasible.

Stoking fears of a Middle East arms race, Saudi Foreign minister Adel al-Jubeir told CNN the kingdom would pursue its own nuclear weapons if Iran resumed its alleged quest for the bomb.

Members of parliament also chanted "Death to America", and burned a United States flag and a symbolic copy of the nuclear pact, known officially as the Joint Comprehensive Plan of Action (JCPOA), Reuters reports.

"Trump has violated all worldwide norms that come with such an agreement", said Ali Khorram, a former Iranian ambassador to China and adviser to the country's nuclear negotiating team. While the burning of Old Glory isn't rare in Iran, this was the "first time political observers could remember anything being burned inside the parliament itself", the AP reports.

Yet nations like Israel and Saudi Arabia that loathed the deal saw the action as a sign the United States is returning to a more skeptical, less trusting approach to dealing with adversaries.

Several Asian refiners told Reuters that they were already on the lookout for alternatives to Iranian crude oil deliveries.

He said the agreement with Iran would never remove the danger of Tehran developing atomic weapons.

Trump's threats regarding the nuclear deal have influenced Iran to consider all possible outcomes, including a JCPOA without the USA, but which might still include some European allies, China and Russian Federation.

President Hassan Rouhani said Iran will push to make the deal work but may increase uranium enrichment if the European efforts don't yield tangible results.

In a burst of last-minute diplomacy, punctuated by a visit by Britain's top diplomat, the deal's European members had given ground on many of Trump's demands for reworking the accord, according to officials, diplomats and others briefed on the negotiations. The best-case scenario is that Iran and the other signatories to the deal ignore our withdrawal.

Trump's decision marked a stark diplomatic defeat for Europe, whose leaders urged the U.S. president to think again.

Trump on Wednesday expressed pessimism that tensions between the USA and Iran would ease anytime soon.

"The fact is, this was a disgusting, one-sided deal that should have never, ever been made", Trump said.

During the Majlis' Wednesday session, Speaker Ali Larijani said Trump's decision to leave the JCPOA and re-impose anti-Iran sanctions was a violation of the accord that would isolate the U.S.

The Office of Foreign Assets Control (OFAC) said the USA would re-impose previous sanctions on "Iran's port operators, and shipping and shipbuilding sectors, including on the Islamic Republic of Iran Shipping Lines (IRISL), South Shipping Line Iran, or their affiliates".

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