FxWirePro: Daily Commodity Tracker - 21st March, 2022 
After re-imposing all the sanctions, which were removed as a part of the 2015 nuclear accord, known as the Joint Comprehensive Plan of Action (JCPoA) between Iran and 6 world powers (China, France, Germany, Russia, United Kingdom, and United States), on November 4th, the U.S. is now warning countries against allowing Iranian oil tankers which successfully evade monitoring by switching off its locational signals, to port.
The U.S. State Department’s special representative Brian Hook described that Iranian tankers a floating liability as global shipping insurers have stopped doing business with Iran in fear of U.S. sanctions under the Trump Presidency. Mr. Hook explained that with global insurers gone, Iranian tankers are now relying on domestic insurances which according to the State Department will not be able to monetarily protect countries that allow Iranian vessels to post should a maritime accident such as an oil spill takes place. Mr. Hook said, “Oil spills and accidents involving tankers are extremely costly. From the Suez Canal to the Strait of Malacca….and all chokepoints in between Iranian tankers are now a floating liability……Countries, ports, and canal operators, and private firms should know they will be likely responsible for the cost of an accident involving a self-insured Iranian tanker.
Representative Hook also criticized the move to switch off transponder by Iranian vessel as it increases the risk of collision between two ships at the Sea. But with harshest of sanctions imposed on Iran by the United States Iran has little choice to but to use ghost ships for oil exports.
The first round of U.S. sanctions, which included cars, carpets, metals trading and access to the US dollar, entered into force in August. The second round came into effect on November 6, hitting oil, banking, and the shipping sectors. Washington has also threatened secondary sanctions on nations and corporations that continue to do business with Iran.
