European Union, China and Russia defy US with channel for trade with Iran

"In practical terms this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran", says EU foreign affairs chief

The European Union, China and Russia backed a mechanism to allow “legitimate” business to continue with Iran, a plan aimed at sidestepping American sanctions and allowing international trade to continue unimpeded as President Donald Trump pursues his “America First” agenda.

The push for such a channel, announced by EU foreign affairs chief Federica Mogherini in New York on late Monday, reflects growing calls in countries such as France and Germany for the EU to adopt tools that will allow it to pursue its foreign-policy goals with less recourse to an unpredictable US ally. A chief catalyst was Trump’s decision to withdraw from the Iran nuclear deal even as world powers urged the US to stick to its mandate.

“In practical terms this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran, and this will allow European companies to continue trade with Iran,” Mogherini said after meeting with representatives of the other signatories: the UK, France, Germany, Russia, China and Iran. This will be “in accordance with European Union law, and could be opened to other partners in the world,” she said. Trump reimposed the sanctions after quitting the Iran accord in May, and called on US allies to comply.

Oil hits four-year high

The oil price shot to its highest in four years on Tuesday, catapulted by upcoming US sanctions on Iranian crude exports and the apparent reluctance of Opec and Russia to raise output to offset the potential hit to global supply.

The oil price is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high price of $147.50 a barrel.
 
The United States from Nov. 4 will target Iran's oil exports with sanctions, and Washington is putting pressure on governments and companies around the world to fall in line and cut their purchases.