July 1, 2022

US sanctions and economic warfare: Russia and Iran

LQDFX news blog: US sanctions and economic warfare: Russia and Iran

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US sanctions against Russia: Russia will respond to the new US sanctions coming into force on Monday accordingly, following the assessment of their impact.

The Russian President through his spokesman stated that he would work to protect Russia’s interests “in the wake of such unfriendly steps”. Such sanctions, announced earlier in August, concern poisoning of a former Russian agent and his daughter in Britain, on March.

The U.S. administration says the new measures will terminate aid to Russia except for urgent humanitarian issues. A second batch of sanctions related to the poisoning case is to be imposed after 90 days unless Russia allows inspectors to confirm that there are no longer chemical weapons in the country.

US sanctions against Iran

Iran filed a lawsuit with the ICJ to order the United States to lift sanctions imposed by the Trump administration against Tehran. The International Court of Justice is the UN tribunal for resolving international disputes. Although rulings of World Court are binding, it has no power to enforce them.

Iran’s representative said that “the U.S. is publicly propagating a policy intended to damage as severely as possible Iran’s economy”. A ruling is expected within a month. At the same time, Iran’s President urged remaining Iran nuclear Deal (JCPOA) partners today to act quickly to preserve it.

Washington re-imposed “snapback” sanctions following Trump’s decision to pull the States out of the 2015 Iran nuclear Deal (JCPOA). The concept behind the decision, according to the US President, was to curb Iran’s nuclear program.

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Forex Market

The Dollar index remained mainly unchanged against its major traded rivals following Fed chairman’s reassuring speech. The greenback dropped more than 0.5% in the previous session.

The Australian Dollar remained firm, having bounced 1% on Friday when it recouped some losses. Political uncertainty hit severely the Aussie last week, which had lost almost 1.4% on Thursday.

The Euro was broadly flat against the US Dollar, gaining more than 0.7% on Friday.

There is a strong risk Sterling tests fresh lows over coming week amid traders’ concerns for no-deal Brexit.

Oil prices dropped ahead of a conference call between members of a committee monitoring OPEC/non-OPEC deal on output cuts. Brent crude futures fell 33 cents a barrel, while U.S. crude futures fell 32 cents.

Sources: Reuters, CNN money, BBC

PLEASE NOTE The information above is not investment advice.