Eyes are on strait as US-Iran tensions build

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India's imports from Iran could start to slow from August as some big Indian refiners worry that their access to the USA financial system could be cut off if they continue to import Iranian oil, prompting them to reduce oil purchases from Tehran. Senior Iranian officials have warned the country would not easily yield to a renewed US campaign to strangle Iran's vital oil exports.

European countries, along with Russian Federation and China, remain committed to the nuclear deal, but European companies are unlikely to risk USA sanctions to do business with Iran.

US President Donald Trump's administration began dismantling the sanctions relief that was granted to Iran under the deal in June, a month after Trump announced the United States' unilateral withdrawal from the accord.

The drive, supported by Secretary of State Mike Pompeo and National Security Adviser John Bolton, has intensified since Trump withdrew on 8 May from a 2015 seven-nation deal to stop Iran from developing nuclear weapons.

Iran wants guarantees from Europe to maintain banking cooperation and investments in Iran's oil fields as well as continuation of cooperation between Iranian and European small and medium-sized enterprises, Qasemi noted.

With tensions high ahead of the return of USA sanctions on Tuesday, the government of President Hassan Rouhani also faces opposition from conservatives and religious leaders, who have long disliked his outreach to the West and accuse him of governing only for the rich.

Three months ago, the U.S. withdrew from a 2015 agreement among world powers and Iran in which global sanctions against Tehran were lifted.

Last month, United States officials familiar with the matter said the Trump administration had launched a communications campaign to foment unrest and put pressure on Iran to end its nuclear programme and its support of armed groups. -Chinese trade relations. The Trump administration this week said it would increase tariffs on China from 10 percent to 25 percent, prompting Beijing to say it wouldn't be persuaded by economic blackmail.

Another expert who foresees tightening was far more outspoken in his short-term forecast: Stephen Brennock, oil analyst at PVM Oil Associates, stated in a note on Friday that "Venezuela's ticking time bomb together with the return of Iran's oil industry to the sanctions era has all the makings for a major supply shock".

When pressed by CNBC to answer the questions she was raising, Croft replied, "I think this market will tighten at the end of this year", and added that Venezuelan production continues to fall and will be a contributing factor.

Asked about the future of diplomatic relations between Tehran and Riyadh, Qassemi said Switzerland has been representing Iranian interests in Saudi Arabia under an agreement reached with Bern eight months ago.