IEA warns on negative global effects of Iran oil sanctions
The International Energy Agency (IEA) cautioned about global repercussions of the US anti-Iran measures for the oil market.
'As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging and would come at the expense of maintaining an adequate spare capacity cushion,' The IEA's latest report read.
Iran and the five permanent members of the UN Security Council (the US, France, Britain, China, and Russia) plus Germany signed the Joint Comprehensive Plan of Action (JCPOA) in 2015. Iran accepted to curb its nuclear program in exchange for economic sanctions relief.
The US President Donald Trump withdrew from the deal on May 8, calling it the worst deal ever. Washington has also re-imposed the economic sanctions.
Washington has also urged its allies to halt their oil imports from Iran by November 4. The decision has prompted some major customers of Iran crude, such as South Korean and India, to explore ways for escaping the demand.
'The market outlook could be far less calm at that point than it is today,' the Paris-based energy organization said Friday.