US president has threatened to impose new economic sanctions against Iran for continuing its stance of attacking oil tankers near the Strait of Hormuz to put pressure on the Islamic Republic which is already reeling under weight of several financial restrictions. In recent days a US Spy Drone and six oil tankers have been attacked since May at Strait of Hormuz which is regarded as the busiest lane in the world for oil shipments which separates Iran from other Gulf nations in the region. These attacks from both sides have increased the political tensions between Tehran and Washington.
During last weekend Trump had tweeted that he will impose extra sanctions on Iran to prevent the country from obtaining nuclear weapons. Already US has imposed several sanctions on oil exports of Iran and other sectors with the threat that these pressures would continue unless the leadership of Iran changed their mind about developing nuclear weapons. Economists say that Iran’s oil based revenue has been reduced by two thirds so they are in a risky economic position. Escalations between both nations started in May last year when USA backed out from the nuclear deal of 2015 and reinstated several sanctions on Iran.
Till then Iran had been exporting around 10-15 million barrels every week by sea during the first quarter of the year. It has now fallen down to 4-5 million barrels a week but half of that was limited to domestic ports. The nation’s oil exports are its main source of revenue which has been hit hard by US sanctions. Financial restrictions have been imposed on nearly 1000 entities of Iran namely banks, individuals and even shipping vessels that were tied up to Iran’s shipping and energy sectors. During May it was prohibited from selling its iron, steel, copper to USA. These sanctions are being imposed to force Iran to stop giving support to terrorist and militant groups in Middle East.