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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"
brianr on Sun, 7th Feb 2016 11:29 am
That’s hilarious. The Euro will be burnt toast probably within 10 years. The Iranian government must not have any competent financial analysts. Eventually, if they don’t spend their Euros, Iran will have to take a nice little haircut on them, and trade what is leftover for appreciated dollars.
Davy on Sun, 7th Feb 2016 11:37 am
The whole currency regime is in disequilibrium. This is true of the petrodollar, the Yaun, and most emerging market currencies. All carry trades are distorted and under pressure. Many of the so called strong currencies like the Swiss Franc are being pressured by easing from other currencies like the Euro.
Please name one currency not behaving strangely. The reasons are many but a strong deflationary environment punctuated by poor central bank actions is a primary one. Debt is a serious issue and a world full of nonperforming loans. Pointing to the dollar alone without seeing all these other issues is missing the point.
The dollar is likely going to fall soon because the US appears to be in recession. We all know that the whole global economy including the US has been in a secular stagnation with many sectors clearly in recession and others like the finacial sectors in growth. The dollar is dying along with the whole global basket of fiat currencies. The Yuan is the biggest issue currently. Markets are expecting carnage once it drops another 15%-20%.
eugene on Sun, 7th Feb 2016 1:50 pm
I may be mistaken but my understanding is the US ships sailed into the path of the Iranians. And don’t tell me the US ship “broke down” in Iranian waters. The reality is the US has messed with Iran for decades. The reason is quite simple, they simply won’t mind and we can’t stand that. Arrogant, superior thinking people never can.
As far as currencies, most everyone in the world, except Americans, are aware the US has used the dollar to punish/control other countries for decades. Our refusal to get our financial house in order is noted everywhere. It’s now blowback time and, it appears to me, it is not going to be nice.
Anonymous on Sun, 7th Feb 2016 2:46 pm
Good on Iran. Insisting that the billing in Euros is foolish…well, just because they are Euros and not american toilet is just suffering from sore loser syndrome. Saying things like the toilet dollar may have problems, but the Euro is in the same boat wont cut it. Oil is a valuable commodity no matter what the ‘economy’ is doing at any given moment, and any currency that trades for oil, is by default-strengthened.
There is a reason the rogue us empire invades nations and murders their leaders when they have tried to trade in oil for something other than dollars you know….
CAM on Sun, 7th Feb 2016 2:49 pm
The writer is clearly ignorant of Iranian history. The US and UK overthrew Iran’s democratically elected government in 1953 in order to steal Iran’s oil. The US and UK put the Shah, a brutal dictator in power, and trained his secret police the Savak, who tortured and murdered untold thousands of Iranians. It was the CIA working out of the US embassy who trained Savak. And for this, the writer appears to believe that Iran should be what, greatfull to the US and UK? LOL.
Anonymous on Sun, 7th Feb 2016 3:08 pm
The whole illegal us ‘sanctions’ BS was likely, at, least in part, about this very issue all along. Iran has long sought to sell oil in Euros in its own oil bourse, bypassing london and Jew York for a long time now-this is nothing new. The ‘sanctions’ were likely meant to keep as much Euro, or Ruble, gold, or Yuan denominated oil sales off the world market as possible. The fake ‘nuclear’ issue, or the equally fake ‘exporter of terrorism’ trope, were meant to provide thin justification for keeping non-dollar oil off the market.
Of course, short of outright invasion, the empire had to eventually ease up a little, especially when none of the justifications had any basis in reality. Good to see Iran flipping the us the bird where it hurts them most. This could also explain why the us is so butt-hurt its ‘ISIS’ army in Syria is getting is ass kicked. The americants had planned to turn the USlamic state against Iran next-and still well could. Hoping to use its fake ‘rapprochement’ with Iran as cover.
hormoz nozari on Sun, 7th Feb 2016 3:15 pm
I agree with Cam on Sun. The writer arrogance and ignorance is very clear. Let the Iranians worry about their money. They had enough of the US and UK interferences, murders, stealing their wealth and freedom. The interesting part is that Iranians never express hater to Americans as individuals, and that is the handsome irony. But bigot like this writer are not liked. This must not be misunderstood. Intercepting a foreign navy ship in own waters, is not in many languages kidnapping, you idiot.
Dean on Sun, 7th Feb 2016 3:32 pm
Stop lying United States did the right thing with Iran. Stop being so hateful, so ungrateful. The relationship between the U.S. and Iran must continue> It is better for the world peace and for both nations. Enough being bias enough hate for God sake
whitecedar on Sun, 7th Feb 2016 3:43 pm
The Irani are hardly in a position for payments of oil delivered by Reza Sha. They have no right to it according to Reza Sha while he was in cancer treatments. If you pay at all we should give to in Chinese Yuan. We are not paying a revolutionary country for its own refusal to recant from being a Rogue country which it is still the largest facilitator of Terrorism in the world, even more that Qatar.
The US Owes Iran nothing. I think the Congress will take that line also. You are terrorist and we do not fund terrorists.
Sorry contact us when you cease funding terrorism. Example Hamas, Fatah, Hezbollah, rebels in Yemen, Muslim al Jihad, Shia rebels in Nigeria, and instigating unrest in the Persian Gulf area including the Arabian peninsula, and Syrias Monster Child Killer Assad. Oh yes and your putting to death over two hundred children and teenagers.
In other words stop being the scum of the Earth.
tedon on Sun, 7th Feb 2016 3:49 pm
When AssAtollah Khameni’s Islam-infested body is buried in the dirt, it would be visited and stamped on by a pile of cheap Chinese shoes paid by US dollars.
ezio auditore on Sun, 7th Feb 2016 3:55 pm
Nazi america is the most evil dictatorship in human history. No nation wants nazi america dictating to every nation globally.
soothsayer on Sun, 7th Feb 2016 3:57 pm
…every competitor of the US will come up with strategies and conspiracies to unseat the USD as the oil currency of choice, this is one of many in the oil-play…if successful (but I doubt it) may force US to produce domestic oil for domestic consumption…drill, baby, drill…
Anonymous on Sun, 7th Feb 2016 3:59 pm
Hmmm… Iraq and Libya were to do the same thing. Look what happened to them. Iran? You can’t be that stupid to not realize you are asking for invasion. So, is this a trap for the U.S. ?
Al on Sun, 7th Feb 2016 4:20 pm
I say let the Iranians and the other countries that speak I’ll of the United States eat and drink their precious oil. Luckily for all those who view our nation as evil, we ourselves believe and follow an Almighty God whose son Jesus Christ said feed the hungry and give drink to the thirsty. He also said pray for and love your enemies. Very difficult to do!!! If it wasn’t for the USA, and God acting through her, the world would quickly come apart. God bless America!
bug on Sun, 7th Feb 2016 4:28 pm
God acts through the USA? Really?
That means he knows who……..is going to win today in San Francisco. That is so cool.
Does he let anyone in on the winner in advance?
The Pope? Na, he is in Italy. A bible thumper perhaps?
smegma on Sun, 7th Feb 2016 4:39 pm
Tell them to send it some were far away.
Wally Ray Sparks on Sun, 7th Feb 2016 4:46 pm
Israel’s influence has led America to Dead End!
Richgolfer on Sun, 7th Feb 2016 5:01 pm
From the bible thumper, You know America should pull out of the world affairs and let the anti-Christ come to power so that all these countries will follow him to hell where they belong. Let’s face it this Islam religion is from Satan which instructs its followers to kill Christians and Jews and the infidels.
enough said
Richgolfer
Apneaman on Sun, 7th Feb 2016 5:01 pm
God acts through the USA?
So, God’s a fucking retard too?
onlooker on Sun, 7th Feb 2016 5:10 pm
You religious zealots are not only vile to equate the US with righteousness but completely ignorant. Go back to your religious fantasy land. This board is about rational thoughtful debate.
David Phelps on Sun, 7th Feb 2016 6:24 pm
President Rouhani,and the Ayatollah need to be invited to America, and then arrested for espionage.
bug on Sun, 7th Feb 2016 6:33 pm
I am more afraid of drunk drivers than Satan, who does not exist.
James on Sun, 7th Feb 2016 6:46 pm
Iran’s population is one held captive by an evil mean spirited oligarchy that is constantly accusing other countries of arrogance and worful pride while it is obvious that the same Iranian government is the champ when it comes to arrogance and pride.Maybe they should go ahead with their threats against Israel and try their crushing defeat on us who are well aware of their evil intent to rule the world via the dictates of their prophet.We are are educated and worldly -wise are quite tired of all rhetoric from all sides;including the U.S.A. However we are very tired of the boasting of the boasting of Iran’s leaders.Super glue works wonders.
Maximus on Sun, 7th Feb 2016 7:12 pm
well,I guess your which just come true. you hate Muslims so much, and you don’t want to do business with them,and you don’t want them to come to your land, I guess you shouldn’t complain then, at least Iran have Pride and said fine will leave you alone, unlike arab poppets, still liking Americans hands, even after they kill their families in Iraq raped they mothers and took their gold.
Maximus on Sun, 7th Feb 2016 7:13 pm
LOL well,I guess your which just come true. you hate Muslims so much, and you don’t want to do business with them,and you don’t want them to come to your land, I guess you shouldn’t complain then, at least Iran have Pride and said fine will leave you alone, unlike arab poppets, still liking Americans hands, even after they kill their families in Iraq raped they mothers and took their gold.
Maximus on Sun, 7th Feb 2016 7:14 pm
Yes! well,I guess your which just come true. you hate Muslims so much, and you don’t want to do business with them,and you don’t want them to come to your land, I guess you shouldn’t complain then, at least Iran have Pride and said fine will leave you alone, unlike arab poppets, still liking Americans hands, even after they kill their families in Iraq raped they mothers and took their gold.
Maximus on Sun, 7th Feb 2016 7:14 pm
ok! well,I guess your which just come true. you hate Muslims so much, and you don’t want to do business with them,and you don’t want them to come to your land, I guess you shouldn’t complain then, at least Iran have Pride and said fine will leave you alone, unlike arab poppets, still liking Americans hands, even after they kill their families in Iraq raped they mothers and took their gold.
eastman on Sun, 7th Feb 2016 7:18 pm
@james “their evil intent to rule the world via the dictates of their prophet” where did you pull that one off? from your A. that shows the level of your stupidity and education if some one resist a bully becomes arrogant? Iran wants to be left alone and unsanctioned
“We are are educated and worldly -wise”
lol
Dooma on Sun, 7th Feb 2016 7:20 pm
“Iran enjoys trolling the United States”….WTF?
The USA loves messing with Iran and has been doing so since oil was discovered there.
Apneaman on Sun, 7th Feb 2016 7:24 pm
James, there are a small percentage who are actually educated – as opposed to schooled – and an even smaller who are wise. The rest of America are total retards and all the numbers and observations back that.
” The Gap Between Enrolling in College and Being Ready for College
Every year in the United States, nearly 60% of first-year college students discover that, despite being fully eligible to attend college, they are not ready for postsecondary studies. After enrolling, these students learn that they must take remedial courses in English or mathematics, which do not earn college credits. This gap between college eligibility and college readiness has attracted much attention in the last decade, yet it persists unabated. “
http://www.highereducation.org/reports/college_readiness/gap.shtml
Over a trillion dollars a year spent/wasted on edyacation. Maybe one day y’all catch up to the Estonians in math and science……sure.
U.S. students improving – slowly – in math and science, but still lagging internationally
http://www.pewresearch.org/fact-tank/2015/02/02/u-s-students-improving-slowly-in-math-and-science-but-still-lagging-internationally/
The U.S. ranks 2nd in ignorance
“According to the research firm IPSOS Mori, the United States ranks second out of fourteen countries in general ignorance about social statistics such as teen pregnancy, unemployment rates, and voting patterns.”
https://rankingamerica.wordpress.com/2014/10/30/the-u-s-ranks-2nd-in-ignorance/
James, I’m not sure it’s appropriate to discuss this on what is one of Americas biggest annual days of worship.
makati1 on Sun, 7th Feb 2016 7:33 pm
This one brought out the freaks and the ignorant in droves! Their comments prove their inability to take off the blinders/overcome the brainewashing. Proof that the human species is too screwed up to survive for much longer.
Religion? The Iranians and the Christian/Israeli bible thumpers believe in the SAME god. But they are too ignorant to realize it. It ruins their rants to understand that their phony beliefs are just brainwashing from birth, like the Easter Bunny or Santa Claus. The ‘god’ that is on America’s side is the SAME one that the Iranians/Saudis claim are on THEIR side. It would be funny if it wasn’t killing millions.
Yes, the world is decoupling from the USD as fast as it can and when that oil is paid for in Euros/Yuan/Yen/Pesos/gold it will be the turning point in America’s power to control the world.
The USD doesn’t need to be destroyed, just cut down to size and equal to the other currencies in use. When the US consumes it’s ~4% of the world’s resources and no more, THEN it will see what the rest of the world sees.
twocats on Sun, 7th Feb 2016 7:37 pm
Wow, kicking the Iranian-rock really sends the most disgusting bugs running out into the daylight (not you bug :))
George on Sun, 7th Feb 2016 8:43 pm
my next MR.TRUMP will have the US base oil com.drill and keep the oil in the US
George on Sun, 7th Feb 2016 8:44 pm
present
Jason on Sun, 7th Feb 2016 9:19 pm
Iranian backed militants are launching ballistic missiles at Saudi Arabia out of Yemen on a regular basis does not even make the news. Iran nuclear deal will mark the end of this world as we know it. We have been sold down the river and our president has made a deal with the devil. Sad day for us Democrats. I am ashamed to be one.
Boat on Sun, 7th Feb 2016 9:28 pm
Jason,
So the Saudi attack Yemen and they fight back. Your ashamed because the 18 trillion US debt isn’t big enough? You want to war with Yemen and Iran also? Is your name GW? The Saudi can take care of themselves. Heck we have sold them over 100 billion in weapon systems in the last couple decades.
Jason on Sun, 7th Feb 2016 9:59 pm
Ya, always a great idea to hand billions of dollars to a country that still chants death to America. Kennedy put sanctions on Cuba and reduced them to a sugar cane factory. Same should have applied to Iran and reduced them to camel farmers. Iran nuclear deal the worst deal ever. Sad day for America.
cornandu on Sun, 7th Feb 2016 10:12 pm
please don’t hate me you that are not from America that talk so vicisously about our Christian God,because thru Jesus I can forgive your mother fuckin ass just before I put my foot up it…MAY GOD BLESS YOU to love this my country or take yo ass home to yours fool..signed:VIETNAM VET..LOL
Apneaman on Sun, 7th Feb 2016 10:19 pm
There are no gods, America is a 3rd world shithole now and the military misadventure to Vietnam was a fools errand. Maybe you had little choice.
rockinr on Sun, 7th Feb 2016 10:33 pm
YES. The petrodollar is dieing. Good riddance.So many countries were held hostage and blackmailed by the U.S. by using the petrodollar. This idea is coming to an end. Adios.
joe on Sun, 7th Feb 2016 10:38 pm
Wow, Jason, go read econ 101 before spouting. Cuba did not break under sanctions, ok, they didnt have much import trade, but Cuba simply adapted, as for Iran, they endured a US backed ww1 style war launched on them by Saddam including gas attacks. Then they had to endure an economic war that kept them out of the oil market, and guess what, after all the US did to them, they still sat at negotiations because like Cuba, they didnt break, they simply adapted. The US has become the foreign policy arm of the Israeli and Saudi governments who would love to wipe each other out but lack the balls to try.
Jason on Sun, 7th Feb 2016 11:01 pm
So Joe, If I understand you right, you agree with President Obama and Hillary Clinton, that giving billions of dollars to a sworn enemy of the U.S. and Israel is a great thing even though they sponsor terrorism in the Yemen, Syria etc. Lets not forget they took claim for the 280 Marines killed in Lebanon back in the 80’s. I can tell you one thing, every Democrat I know is hoping and praying they get a chance to vote for Trump. This so called deal will be over his first day in office. Make America Great again.
joe on Sun, 7th Feb 2016 11:13 pm
You are talking as if you have a choice. 40 years of war and sanctions delivered a strong Iran. SURE you can say next ‘we can bomb em back to stone age’, hmm, thats not working in Iraq, Syria, Libya, etc, where Americas enemies get stronger, the more they are attacked either directly or indirectly by the US. After 9-11 the US invaded Afghanistan, today the Afghan government is about to negotiate with the TALIBAN, yet all you armchair generals arent crying about that, hmmm, didnt the Taliban harbour Bin Laden, all that blood spilled to achieve negotiations. Sound like somthing we heard before? Vietnam? Next we’ll be negotiating with ISIS. No I dont agree with Democrats or any other political party because that implies that there is difference. Green is the same color to all, and politicians love the color green….
GregT on Sun, 7th Feb 2016 11:27 pm
“I can tell you one thing, every Democrat I know is hoping and praying they get a chance to vote for Trump.”
Voting for a TV reality show host /real estate tycoon as POTUS is a very dumb idea. One that the entire rest of the world is watching in complete disbelief.
The majority of the people always get the government that they deserve. I feel really bad for the millions of Americans who are in the minority.
Jason on Sun, 7th Feb 2016 11:52 pm
One thing good about the nuclear deal is the fact that they did allow that if Iran used the billions to buy a nuclear arsenal, we would reconsider putting some sanctions back on. I wonder how many nuclear bombs they can purchase with 150 billion Euros. Russia could use some extra money right now, I am sure they have plenty of Nukes lying around. It is too bad that the only politician running that resembles the true Democrats of old is Trump. It seems as though our president and Hillary would really like to arm all our enemies with nukes, that way it would be a more fair playing field. Iran nuclear deal, worst deal ever. Make America great again. It is time we become men again and not mice.
Boat on Sun, 7th Feb 2016 11:53 pm
Trump ? Dem’s want Trump? Are you a relative of mak? That’s some wild shyt. Lol
GregT,
Don’t put the US humans on a pedestal there GregT A good third of the US supports more war in the middle east and vote in congressmen that will do it. Those are the Trump supporters. Confederate flags still fly in front of homes and hang on the back windows of pickups. They’re still mad about the war between the states.
Same with systems. The system of capitalism would work much better but for backwards human thinking.
Rob gareth on Mon, 8th Feb 2016 1:44 am
America , Iran,Saudi Arabia, have so much suffering on the rest of makind thru deception and their dirty oil , technologies and filthy twisted religions. These nations should simply be wiped out by nibiru x planet. Hahaha lol
Sanora on Mon, 8th Feb 2016 2:27 am
Europeans have decided to make friends with Iran. Europeans are slightly better at dealing with Jewish propaganda. Wonder why? 🙂 Meanwhile Americans are confused and angry. Iran, Russia, China are all getting stronger. They are also making friends. USA has only two friends. The Jews and the ‘King’ in Saud’s Arabia. Saudi people hate USA, 911 bombers were from Saud’s Arabia.
USA can remain subservient to Israel and continue hating Iran. Or USA can remember its founding principles, and understand why Iran is being accepted by more civilized European countries.
russ on Mon, 8th Feb 2016 4:37 am
The towel heads just don’t get it…oil is not going to be worth much at all in the future. Hell its only 1/4 the cost as it was one year ago. My bet is with the oil we have in the USA, and natural gas, all we need to do is place a tariff on the import of oil so that no company in the USA wants to buy there over seas arab towel head oil. Come on, grow up..idiot towel heads, the jig is up…we won’t need your damn oil….just seel it to your neighbors, oops they have too much oil too! oops maybe they will sell you some! oops you have too much too! Well go screw your camel then, maybe that will make you feel better! or just rape some more of your women and stone some of your girls….oops….you already did that millions of times! hummmm, what will you do then…ahhhh, lets see send some one to blow up the people that do not want your damn oil! hummmm, lets see, what will do….a two hump or one hump on the camel!!!!!!!
Ray on Mon, 8th Feb 2016 5:11 am
Unreal….
How long will it take before something major happens between the 2 countries?