US resumes sanctions against Iran

Oil markets look for alternatives as US sanction on Iran hit

Iran has greeted the reimposition of U.S. sanctions with air defence drills and an acknowledgement from the president, Hassan Rouhani, that the country faces a "war situation", raising tensions in the Middle East.

"But an alternative sourcing strategy needs to be worked out soon as the USA relaxation would be temporary and Washington would expect India to keep cutting imports from Iran to reach zero level", said an energy sector expert.

This year, people have taken part in the rallies ever more enthusiastically to condemn Washington's anti-Iran policies as the USA government has chose to re-impose what it calls crippling sanctions on Tehran on November 5.

Trump told reporters Sunday as he left the White House for political rallies in the South that the sanctions, which include an oil embargo, are the strongest ever imposed by the United States.

"Today, Iran is able to sell its oil and it will sell", Rouhani said on Monday as the sanctions kicked in.

India in particular already buys many weapon systems from Russian Federation and has made a decision to violate U.S. sanctions on Russian Federation to purchase its S-400 anti-aircraft system.

He also said Iranian oil exports had dropped by almost one million barrels a day, choking the main source of funding for the country.

The US is seeking to "alter" Iranian behavior with the sanctions, and has been leaking out a stream of 12 demands it wants to see Iran agree to in exchange for re-lifting the economic penalties.

The Iran nuclear deal was drawn up by the Obama administration and was agreed to by the UK, Russia, France, China, Germany and the EU.

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"Iran is a much different country than it was when I took office", said Trump, adding: "They wanted to take over the whole Middle East".

"The sanctions will force Iran's hand as Mike Pompeo argued that at the rate that the Iranian economy is declining, and protests are intensifying, it should be clear to the Iranian leadership that negotiations are the best way forward", said Dr. Albadr Al-Shateri, politics professor at the National Defense College in Abu Dhabi.

"The JCPOA is a key element of the global nuclear non-proliferation architecture and of multilateral diplomacy", they said.

"(It might) give few concessions in regional crisis points like Syria and Yemen, and hope for a regime change in Washington", he said.

Crowds of Iranians called for "Death to Israel" and "Down to U.S." in a rally to mark the 39th anniversary of the U.S. Embassy in Tehran.

"The Iranian people will prove to them how loyal they are to their Supreme Leader (Khamenei) and that they will never abandon him".

Saudi Arabia is the only country with the capacity to make up for lost Iranian oil production.

It is 39 years since 52 American citizens were taken hostage and held for 444 days after hardline students stormed the U.S. embassy.

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