Chillin' out till it needs to be funded
India could join the list of countries against whom sanction is imposed as Obama administration warned india yesterday according to Reuters/Bloomberg. The sanctions could arrive June 28, India is an ally but so are Japan and Korea who are reducing their purchases of Oil from Iran. India’s fuel basket price increase could trigger a run on inflation in the nation as it is wedded to long term price contracts of Iranian Oil. All sanctions passed in December against central Bank of Iran i.e. blockin gof transactions with entities transaction with the Iranian Bank or purchasing Iranian Oil. This would help US block any international access for Iranian Oil export merchants.
So we just use a couple of Public Sector banks for the payments and they get blocked! No, this runs much deeper, but India won’t take chances unless it can be assured of keeping price sensitive imports in line. turkey is another country on which EU and US sanctions could kick in as they block all attempts to join sanctions of their neighbours
EU joined sanctions in late january and till now has survived with China and Russia not biting back except for the Aviation Carbon Tax for which many airlines have written to the EU
However marg Brennan on Blooberg reports that earlier today (Thursday) payment transfers to and from Iran ( Individual or Corporate) have been totally blocked by EU. EU had earlier targeted cutting them off the SWIFT platform for inter Bank payments SWIFT ‘s international Financial clearing is used exclusively by most banks for cross border trade and local/glocal payment transfers
And no, India will not join the barter trade in Gold for Iranian Oil. An emergency stock withdrawal from Pil reserves is warranted by the Iran sanction to maintain price stability according to Reuters just now.
The US & UK will not go to IEA for release from the 700 mln Strategic Petroleum Reserve while UK cowill contribute byupermanently reducing its SPR levels
Meanwhile Individual Stock Option trading on the US exchanges got a big fillip as volumes in Apple crossed 2 mln contracts. Each contract is worth a lot of 100 shares of the underlying.