Korea braces for U.S. sanctions on Iranian imports including oil
- 6 years ago
The U.S. is going to re-impose sanctions on Iran on Tuesday after President Trump pulled Washington out of the 2015 nuclear deal.
Doing so will not only sharply restrict the trade of Iranian automobiles and metals... they could also affect Korea's crude imports from Iran.... which means... higher prices at the pump for drivers in Korea.
Kim Ji-yeon reports.
The first round of the U.S. sanctions goes into effect on Tuesday following Washington's decision to withdraw from the Joint Comprehensive Plan of Action, also known as the Iranian nuclear deal.
The sanctions will cover Iranian trade in automobiles and metals, including gold.
But even before the sanctions are fully imposed, Korea's outbound shipments to Iran are declining.
The Korea International Trade Association estimates exports to Iran dropped by more than 15-percent during the first half of this year from the same period last year to around one-point-seven billion U.S. dollars.
What's more worrisome for Korea is the second round of sanctions, which targets Iran's oil, energy and financial industries, that's scheduled to come into effect in November.
The sanctions are expected to take the form of a secondary boycott that would apply to companies and countries trading with Iran.
That means Iranian crude shipments is to drop by November... and could prompt a price hike on local gasoline prices.
Iranian crude currently takes up nearly 98-percent of all Iranian imports to Korea and more than 10-percent of all crude shipments imported into Korea.
Local gasoline prices rose for the fifth straight week to trade at around one-dollar-40-cents per liter on average... the highest level so far this year, according to the Korea National Oil Corporation.
Already, the amount of Iranian crude imports to Korea dwindled by 18-and-a-half percent during the first half of this year from the same period last year to 3-point-3-billion dollars.
Kim Ji-yeon, Arirang News.
Doing so will not only sharply restrict the trade of Iranian automobiles and metals... they could also affect Korea's crude imports from Iran.... which means... higher prices at the pump for drivers in Korea.
Kim Ji-yeon reports.
The first round of the U.S. sanctions goes into effect on Tuesday following Washington's decision to withdraw from the Joint Comprehensive Plan of Action, also known as the Iranian nuclear deal.
The sanctions will cover Iranian trade in automobiles and metals, including gold.
But even before the sanctions are fully imposed, Korea's outbound shipments to Iran are declining.
The Korea International Trade Association estimates exports to Iran dropped by more than 15-percent during the first half of this year from the same period last year to around one-point-seven billion U.S. dollars.
What's more worrisome for Korea is the second round of sanctions, which targets Iran's oil, energy and financial industries, that's scheduled to come into effect in November.
The sanctions are expected to take the form of a secondary boycott that would apply to companies and countries trading with Iran.
That means Iranian crude shipments is to drop by November... and could prompt a price hike on local gasoline prices.
Iranian crude currently takes up nearly 98-percent of all Iranian imports to Korea and more than 10-percent of all crude shipments imported into Korea.
Local gasoline prices rose for the fifth straight week to trade at around one-dollar-40-cents per liter on average... the highest level so far this year, according to the Korea National Oil Corporation.
Already, the amount of Iranian crude imports to Korea dwindled by 18-and-a-half percent during the first half of this year from the same period last year to 3-point-3-billion dollars.
Kim Ji-yeon, Arirang News.