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Page added on February 7, 2016
Iran Says No Thanks To Dollars; Demands Euro Payment For Oil Sales
Iran enjoys trolling the United States. In fact, it’s something of hobby for the Ayatollah, who has maintained the country’s semi-official “death to America” slogan even as President Rouhani plays good cop with Obama and Kerry.
The ink was barely dry on the nuclear accord when Tehran test-fired a next-gen surface-to-surface ballistic missile with the range to hit archrival Israel, a move that most certainly violated the spirit of the deal if not the letter. Two months later, the IRGC conducted live rocket drills in close proximity to an American aircraft carrier and then, on the eve of President Obama’s final state-of-the-union address, Iran essentially kidnapped 10 American sailors in what amounted to a truly epic publicity stunt.
All of this raises serious questions about just how committed Tehran is to nurturing the newfound relationship with America, a state which for years sought to impoverish Iran as “punishment” for what the West swears was an illegitimate effort to build a nuclear weapon.
As regular readers are no doubt aware, Iran is now set to ramp up crude production by some 500,000 b/d in H1 and by 1 million b/d by the end of the year now that international sanctions have been lifted. In the latest humiliation for Washington, Tehran now says it wants to be paid for its oil in euros, not dollars.
“Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month’s sanctions relief,” Reuters reports. “In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery,” an National Iranian Oil Co. said. Here’s more:
Iran has also told its trading partners who owe it billions of dollars that it wants to be paid in euros rather than U.S. dollars, said the person, who has direct knowledge of the matter.
Iran was allowed to recover some of the funds frozen under U.S.-led sanctions in currencies other than dollars, such as the Omani rial and UAE dhiram.
Switching oil sales to euros makes sense as Europe is now one of Iran’s biggest trading partners.
“Many European companies are rushing to Iran for business opportunities, so it makes sense to have revenue in euros,” said Robin Mills, chief executive of Dubai-based Qamar Energy.
Iran’s insistence on being paid in euros rather than dollars is also a sign of an uneasy truce between Tehran and Washington even after last month’s lifting of most sanctions.
U.S. officials estimate about $100 billion (69 billion pound) of Iranian assets were frozen abroad, around half of which Tehran could access as a result of sanctions relief.
It is not clear how much of those funds are oil dues that Iran would want back in euros.
India owes Tehran about $6 billion for oil delivered during the sanctions years.
Last month, NIOC’s director general for international affairs told Reuters that Iran “would prefer to receive (oil money owed) in some foreign currency, which for the time being is going to be euro.”
Indian government sources confirmed Iran is looking to be paid in euros.
Iran has pushed for years to have the euro replace the dollar as the currency for international oil trade. In 2007, Tehran failed to persuade OPEC members to switch away from the dollar, which its then President Mahmoud Ahmadinejad called a “worthless piece of paper“.
Of course all fiat money amounts to “worthless pieces of paper” and as things currently stand, the USD is the least “worthless” of the lot which means that Iran’s insistence on being paid in a currency that Mario Draghi is hell bent on devaluing might seem strange to anyone who knows nothing about geopolitics.
Put simply, this has very little to do with economics and a whole lot to do with sending a message. “Iran shifted to the euro and canceled trade in dollars because of political reasons,” the same NOIC source told Reuters.
Right. So basically, Iran is looking to punish the US for instituting years of economic tyranny by de-dollarizing the oil trade.
This comes at a time when the petrodollar is under tremendous pressure. Russia and China are already settling oil sales in yuan and “lower for longer” crude has broken the virtuous circle whereby producing countries were net exporters of capital, recycling their USD proceeds into USD assets thus underwriting decades of dollar dominance.
The question, we suppose, is whether other producers move away from the dollar just as Russia and Iran have. If there’s a wholesale shift away from settling oil sales in greenbacks, another instrument of US hegemony will be dismantled and Washington’s leverage over “unfriendly” producers will have been broken.
The irony is this: if Iran follows through on its promises to flood an already oversupplied market, crude might not fetch any “worthless pieces of paper” at all – dollars or euros.
89 Comments on "Iran Says No Thanks To Dollars; Demands Euro Payment For Oil Sales"
Concern1 on Mon, 8th Feb 2016 5:14 am
Wise move by the Iranians good for the World
Marti on Mon, 8th Feb 2016 5:19 am
wqd
cacat superior on Mon, 8th Feb 2016 8:09 am
It serves Obama right
Obama gave away the store with this pro Iran capitulation and now the Iranians and the Euros are shitting all over US
peakyeast on Mon, 8th Feb 2016 8:24 am
I only see three comments? But it says there are 53? Anybody else has this problem?
dennis on Mon, 8th Feb 2016 9:54 am
In the first place the 100 billion that is being returned belongs to Iran anyway,they always felt that it was an injustice to be crippled by Washington so is it any wonder?
tax payer on Mon, 8th Feb 2016 10:36 am
Im sure the youg people of the US will be ever so grateful for Obamas treachery.
ghung on Mon, 8th Feb 2016 10:52 am
Peaky; these threads roll over after 50 comments.
penury on Mon, 8th Feb 2016 11:10 am
It would appear that the curse of “may you live in interesting times” has been fulfilled. Serendipity today is “Gung Hay Fat Choi” sp is not my forte”
Sanches on Mon, 8th Feb 2016 11:20 am
I noticed that the right to exit with dignity is becoming more and more expensive
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Jason on Mon, 8th Feb 2016 7:29 pm
Dennis, it might have been their money, but after what they done to us, we should have done a lot more then freeze their money. Hostages, hundreds of Marines killed, Ambassador tortured and killed. Now, they sponsor terrorism all over the mid=east and we are going to give them money which we all believe they will use to buy the nuclear weapons they were not smart enough to build. We need to reverse this deal as it is the worst deal ever. Make America strong again.
makati1 on Tue, 9th Feb 2016 5:13 am
Jason, What did they do to US? We have been meddling in their business for at least 50 years. Who care how many jar heads were killed or government bureaucrats killed? We had no business in THEIR country anyway. Just as we have no business in the ME today. Americans kill to support the rich, not for freedom of ‘democracy’.
Jason on Tue, 9th Feb 2016 7:44 am
The Marines were in Lebanon, Iran claimed responsibility for attack. Taking your response into account, then the U.S. should treat Iranians in our country like the Iranians treat our people in their country. Iranians torture and kill our people if they come into their country. What is good for Peter, should be good for Paul. If Iran is so great, why do Iranians want to come here. If you hate the U.S. then get the hell out. Our country can get along without you. Go Trump, Make America great again.
eastman on Tue, 9th Feb 2016 9:30 am
Jason, when did Iranian take responsibility for Marines attack in Lebanon? Iran was accused of something that Israel did like USS liberty and so many other false flag operations created for dummies like you to fall for
eastman on Tue, 9th Feb 2016 9:38 am
jason, “Ambassador tortured and killed” by talking too much you prove how stupid you are, Ambassador that was tortured called for help tto hillary but hillary decided not to do anything about it and Ambassador waskilled was in Libya and was killed by the same people that Iranian are fighting against in Syria now called Algada and isis that are supported by US friends Saudi arabia, Israel and turkey
Jason on Tue, 9th Feb 2016 9:27 pm
Eastman, you are right, it was not an ambassador, it was a U.S. Station chief kidnapped tortured and killed. This happened 6 months after the 280 unarmed marines were truck bombed. this all happened in 1983 and 1984. After the shaw of Iran mess. I just assume that when they always say Iranian militants, that it has something to do with Iran. Perhaps I am wrong. Perhaps we in the U.S. need to understand what an Iranian militant in another country is. Also, I guess we need to understand what an Iranian backed militant is. It is hard for me to justify giving billions of dollars back to a country that sponsors terrorism around the world Just seems to me to be a formula for world war 3. Trump wins in New Hampshire. Make America great again.
Jason on Tue, 9th Feb 2016 9:52 pm
Last thing for Eastman. I was 34 years old when the Iranians grabbed our people as hostages when Jimmy Carter was president. So my memory is rather lax. I just know we could not understand how a 3rd world nothing country could grab our people and we just plain didn’t tromp them into the dust Then a botched rescue attempt and we even looked more the fool. Then Reagan gets in and militants attack our people again in Beirut. Being young bucks, we just tied it all together and developed a real hatred for Iranians. All these years later, they chant death to America, death to Israel and we decide to give them everything back on a platter. The country is totally against this deal yet our president does it anyway. Worst deal ever. Time to vote in a president that will take the bull by the horns and end this goody goody two shoe stuff. Iranians are laughing at us now, but our day will come again. We just need a leader with a backbone.
Apneaman on Tue, 9th Feb 2016 9:59 pm
Jason, the entire world is laughing at you now, but for different reasons than you’ll ever understand. How about in that same time frame you mentioned you went from the richest most powerful nation on earth with an educated middle class to a shithole 3rd world country comprised largely of ignorant yet impoverished retards?
sidzepp on Tue, 9th Feb 2016 10:15 pm
Whatever happened to the “Arabic Spring.” If it doesn’t support our military industrial complex, then it must not be democracy. Our meddling in other nations needs to stop!!!!
Jason on Tue, 9th Feb 2016 10:38 pm
Not impoverished here, our group worked hard and realized the American dream. as near as I know, we have never had refugees fleeing our country, I remember when Iranians were flocking this way like rats off a ship that was sinking. Seems to me, everybody want into the United States and no one wants to leave. Yet you all get on here and gripe about America. We just need to get a president back in with a backbone. Maybe even one that knows what it is like to work for a living.
GregT on Tue, 9th Feb 2016 10:52 pm
“Our meddling in other nations needs to stop!!!!”
There’s little point in taking credit for something being done by others, that you do not agree with, that you had no part in, that is not in your best interest. Vote for anybody in the next election, other than a republican or a democratic, or expect the meddling ( killing) to continue.
GregT on Tue, 9th Feb 2016 10:58 pm
“our group worked hard and realized the American dream”
By the way, it’s the same big club they use to beat you over the head with all day long when they tell you what to believe. All day long beating you over the head with their media telling you what to believe, what to think and what to buy. The table has tilted folks. The game is rigged and nobody seems to notice. Nobody seems to care! Good honest hard-working people; white collar, blue collar it doesn’t matter what color shirt you have on. Good honest hard-working people continue, these are people of modest means, continue to elect these rich cock suckers who don’t give a fuck about you….they don’t give a fuck about you… they don’t give a FUCK about you.
They don’t care about you at all… at all… AT ALL. And nobody seems to notice. Nobody seems to care. Thats what the owners count on. The fact that Americans will probably remain willfully ignorant of the big red, white and blue dick thats being jammed up their assholes everyday, because the owners of this country know the truth.
It’s called the American Dream,because you have to be asleep to believe it.
George Carlin RIP
sidzepp on Tue, 9th Feb 2016 10:59 pm
Vote in the next election, for forty four years and the damn Coke brothers have a lot more influence than my one miniscule vote!
GregT on Tue, 9th Feb 2016 11:10 pm
sidzepp,
The average North American has an IQ of less than 100. I hope you don’t believe that your one vote is going to change that.
sidzepp on Tue, 9th Feb 2016 11:15 pm
Roast beef sandwich, Sauvignon Blanc, and the Trump wins New Hampshire. We continue to look for a Messiah and we have found one.
Boat on Tue, 9th Feb 2016 11:23 pm
Average IQ is actually 85-114. The tests are made increasingly difficult to keep 100 as the goal for average. GragT is like mak. Just full of disinformation. If present day average IQ people took a 1900 IQ test they would average 130. Read GregT read.
GregT on Wed, 10th Feb 2016 12:01 am
“Average IQ is actually 85-114.”
That would be a range Boat, and the average in that range would be 85 + 114 / 2 = 99.5.
“The tests are made increasingly difficult to keep 100 as the goal for average.”
So the real reasons for the dumbing down of America isn’t TV, indoctrination, the education system, or propaganda? People are actually smarter today. It’s just that they keep raising the bar, right Boat.
Fuck are you ever dumb. I’m guessing mid to high 80s.
Jason on Wed, 10th Feb 2016 8:45 am
There was 10 of us that started out in High School together. It was a small farming community school. All from poor families. None of us went to college. 9 of us are millionaires and the one that is not is a retired government worker and has great retirement. All our children have gone to college and have good jobs. None of us are or have been on welfare. Why, because we worked hard, if the pay was poor, we worked two jobs, we worked our way to the top. That my friends is the American dream. Make America great again. Koch brothers employ thousands and thousands of people and they pay well. Yes, they have power, but they have power because they worked hard to get there. One of the rewards for hard work is money and power. Setting at home and looking for freebees from the government does not get you money and power, hard work and devotion does. The guy with the lowest IQ in our bunch, went on to start a tool and die company and became the richest of the bunch. Trump just said again on tv this AM, if he gets in, the Iranian nuclear deal is toast. Make America great again.
GregT on Wed, 10th Feb 2016 10:07 am
“Trump just said again on tv this AM, if he gets in, the Iranian nuclear deal is toast. Make America great again.”
And just how exactly do you propose that imposing financial hardship on 77 million people, in another sovereign state half way around the world, will “Make America great again”?
Boat on Wed, 10th Feb 2016 12:38 pm
GregT,
There are many haters in the world. Trump is popular because he is one of them. Many doomers are just like him although with a different narrative.
Apneaman on Wed, 10th Feb 2016 12:51 pm
Boat, please explain the narrative.
eastman on Wed, 10th Feb 2016 12:55 pm
@jason you angry at hostages in 1978 you should go back to 1953 that US toppled Democratically elected Iranian prime minister and installing a brutal dictator called shah who his secrete SAVAK agents, trained by cia and mossad killed many Iranians that was the reason Iranian revolution happened since US was running every facets of Iranian life against Iranian wishes like Zionists that are doing to US against American whishes .fat trump cant make US great as long as your Hero zionist Kock brothers and jewish Aipack are in-charge of US who they hijacked US government
Apneaman on Wed, 10th Feb 2016 1:05 pm
Jason, I don’t believe one word of your bullshit story. Did y’all get superhero powers in a nuclear mishap as well? People start to lose it when the walls of mommy’s basement start to close in.
Jason on Wed, 10th Feb 2016 6:17 pm
OK Eastman, I have heard of SAVAK and agree that was a bad deal. Right now we have a president that makes deals without support of the people, is trying everything in the world to disarm us so that we end up like the citizens of Iran in the 50’s. That is why he and his kind are on their way out. We do not want to end up at the mercy of people like SAVAK’s,//// Sorry others of you cant believe people who work hard can achieve success.
GregT on Wed, 10th Feb 2016 7:05 pm
Jason,
Every president has always made deals without the support of the people. That’s how the system works. By voting him into office you entrust him to make the decisions.
Please explain what Obama is doing to disarm you so that you end up like the Iranians in the 50s. Whatever that’s supposed to mean.
“Sorry others of you cant believe people who work hard can achieve success.”
People don’t need to work hard in this system to become filthy rich. It all boils down to who you know, who you blow, and who’s your daddy.
Jason on Wed, 10th Feb 2016 7:31 pm
Obama and Hilary both try every trick in the book to get guns away from the people. Every time there is a big shooting Obama is on the news the next day looking for more gun control. Doesn’t understand that the criminals will always get guns and people like the SAVAK.s will get them also. Leave us civilians armed and they will play hell taking us over. And, yes, presidents can make deals, but lighting the fuse to world war 3 by giving Iran all the billions should have been OK’d by congress. I should not really worry, because Israel will take care of business when the time arrives.
GregT on Wed, 10th Feb 2016 7:59 pm
“Obama and Hilary both try every trick in the book to get guns away from the people.”
Please explain what tricks Hillary and Obama have used to “get guns away from the people”.
Lighting the fuse to WW3 had nothing to do with Iran. The systematic destabilization of the entire Middle East has been instigated by the US oligarchy, the lapdog of the Zionist Israelis.
Iran is being finger pointed in the MSM because it just happens to be the next target on their long list.
Jason on Wed, 10th Feb 2016 8:21 pm
Greg, I am going to sign off now. Obviously, you and I can never agree. I cannot condone a country that chants death to America. Arms disgusting militants thruout the Mideast and quite probably the world. Uses their oil money to arm militants with ballistic missiles. The United States is to welcome them all with open arms and they would kill any of us if they have the chance if we come into Iran. We are getting ready to change our politicians out, maybe Iran should do the same. I agree that Nixom, Kisinger and the shah were a bad deal, that is why we voted them out. But until they stop chanting death to America, they will find that hatred will continue to grow. As far as gun control, just listen to either one of them talk about it and you will see that Obama and Hilary would be the happiest people in the world if they could come and take our weapons away. Look what happened to the French, that is what gun control gets you. Been interesting chatting with you. So long and good luck, I hope when Iran gets the bomb it will not get you wherever you are.
GregT on Wed, 10th Feb 2016 8:58 pm
Jason,
You are completely full of shit.
onlooker on Wed, 10th Feb 2016 9:18 pm
Hold on to your guns Jason, see what good that does if the Gov really becomes a dictatorship. Oh and Iran just happens to be a country who does not like to take orders from the Empire so that is why we do not like them. As for arming. haha, the biggest armer has been, is and will continue to be the Empire. I would say wake up but I think you are too indoctrinated to do so.