Global Geopolitical Series: Iran eagerly awaits EU decision on oil guarantees

Iran is eagerly waiting to receive guarantees from the European Union that it would purchase Iranian oil despite U.S. sanctions, part of which became effective since August and the rest would go live by November. Iran is looking for written guarantees by the EU to purchase the oil that would be stuck without an access to the global markets thanks to U.S. sanctions. While the August sanctions were more focused on Iranian access to USD, November sanctions would especially target oil sales and Iranian banking system.

Speaking over the weekend, Iranian oil minister Javad Zarif welcomed the European Union’s decision to provide €18 million aid to Iran to offset the impact of U.S. sanctions on the country but added that Iran is still waiting to receive guarantees from the European Union on oil sales, which Iranian Supreme leader Ayatollah Ali Khamenei described as a must for the nuclear deal to continue without the United States. The EU will allocate eight million euros to Iran's private sector, including assistance for small- and medium-sized enterprises and the country's Trade Promotion Organization. Another eight million euros will be spent on environmental projects, and the rest two million euros will go into fighting harm caused by drugs. Thursday's aid offer to Iran is part of a broader package of 50 million euros earmarked for Tehran in the EU budget.