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  • Iran's Foreign Minister Javad Zarif speaks during a news conference in Istanbul, Turkey October 30, 2018.

    Iran's Foreign Minister Javad Zarif speaks during a news conference in Istanbul, Turkey October 30, 2018. | Photo: Reuters

Published 30 October 2018

The Islamic Republic is about to face a new round of U.S. restrictions on its banking and energy sectors

From Nov. 5 on, U.S. foreign policy will put more pressure on the Iranian economy by seeking to reduce international purchases of its oil production. This is part of the second round of economic sanctions that the Trump Administration reintroduced in August.

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U.S. sanctions against Iran will have “severe consequences” for world order, the Islamic Republic said on Tuesday, days before new sanctions on oil exports take effect.

“Unfortunately a law-breaking country (the United States) seeks to punish a country (Iran) that is abiding by law... This method will have severe consequences for the world order,” Foreign Minister Mohammad Javad Zarif was quoted as saying during a visit to Istanbul.

The sanctions against Iran were reintroduced after the U.S. government pulled out of a multinational 2015 deal that lifted previous measures in return for limits on Iran’s nuclear program.

The first round of economic sanctions attempted to cut Iran off from the international financial system by prohibiting the Islamic country from purchasing U.S. dollars and precious metals. The measures were also aimed at restraining U.S. persons and entities from doing business with Iran.

Nevertheless, the effectiveness of U.S. foreign policy toward Iran is soon to be put to test as China and India are likely to keep buying Iranian oil. In the short run, these countries will not be able to meet their energy needs without resorting to the Iranian supplies.

Currently, Iran is the third-largest OPEC oil producer and its crude exports are estimated in more than 1 million barrels per day.

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