US warns governments, bankers Iran sanctions still in place
The Obama administration has privately reminded foreign governments and US bankers that sanctions against Iran remain in effect, cautioning against a rush by Western companies to invest in Iran's oil industry and other businesses until the country fully complies with the July nuclear agreement.
The US State Department recently cabled a message, known as a demarche, to embassies around the world to reiterate that sanctions on Iran are still in place, diplomatic and government sources told Reuters on October 9.
The demarche stressed that sanctions on Iran would not be lifted until the International Atomic Energy Agency verifies that Tehran has complied with the terms of the deal.
"The United States wants to tell governments not to get ahead of themselves when dealing with Iran," said a London-based diplomatic source.
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It is uncertain exactly when the layers of Western sanctions might be lifted, but experts have said some international financial transactions with Iran would be possible sometime next year if Iran is found in compliance.
US law allows the administration to enforce sanctions by targeting financial institutions in countries that do business with the state-owned National Iranian Oil Co or its subsidiaries. Companies that breach the sanctions risk fines, asset freezes and being cut off from the US dollar banking system.
According to the London-based diplomatic source, Iran's decision last month to postpone a key oil conference in London for the fourth time came after US officials conveyed concerns to British diplomats that the Dec. 14 event would take place before the easing of sanctions. It is now planned for February 2016.
Iran's national oil company has said it plans to unveil more than 50 new contracts for development of the country's energy reserves that have been choked under the sanctions at the conference in February.
There has been "a real gap" in the understanding by oil and commodities traders about the complexities of the deal and getting information out there is important, said the Obama administration source.