Yury Kobzar20:45, 08/25/233 min.575

Iran was allowed to export more oil to where Russia sells it.

According to a secret agreement with Iran, the USA unofficially lifted part of the sanctions so that Iranian oil could enter the world market more actively and displace Russian oil. Bloomberg writes about it .

“Months of secret diplomacy between the two countries have led to progress on prisoner swaps, unfreezing of frozen assets and possibly even Iran’s enrichment of uranium.

They also appear to have reached an informal agreement on oil flows,” the article said.U.S. officials told reporters on condition of anonymity that they have gradually eased certain sanctions on the sale of Iranian oil. 

Tehran has restored output to the highest level since the ban was imposed five years ago and is supplying China with the most crude oil in a decade. Iranian officials are confident that they will pump even more soon.

Thanks to this, the supply on the world market has increased, which pulls prices down. 

And this, in particular, can be beneficial for US President Joe Biden, who has to start an election campaign.”It’s a traditional game of energy diplomacy: making deals to get more barrels.

The economic interests of the U.S. and Iran are aligned when it comes to putting more barrels on the market,” said Helima Croft, head of global commodities strategy at RBC Capital Markets LLC in New York.

The publication notes that Washington will still not tolerate the purchase of Iranian oil by its partners (South Korea, Japan or European countries), but it is calm about expanding sales to China.Tehran is offering Beijing deep discounts on its oil to compete with Russian supplies that Europe has refused. 

Iran’s two main grades are currently trading at a discount to Brent of more than $10 a barrel, traders said.

Also, Tehran is forced to compete with Russia for the so-called “shadow fleet” of old tankers, because “white” carriers cannot cooperate with Iran due to sanctions. 

Experts doubt that Russia and Iran will have enough for two of the entire shadow fleet available on the market.

(C)UNIAN 2023