Sanctions backtrack shows US out of step with the world

In a surprise move, the United States has said that it will likely give waivers to some allies that rely on Iranian oil supplies. “We want to achieve maximum pressure but we don’t want to harm friends and allies either,” US National Security Advisor John Bolton said on Wednesday. But the move also helps save face for the US just three days before the Nov 4 deadline the US set for international oil buyers to stop all their purchases from Iran.

Washington had threatened it would punish any violators. But few if any countries, including its allies, had shown any willingness to comply with Washington’s ultimatum.

The abrupt change of mind by the US administration shows it has finally recognized its plan to cut down Iran’s oil exports to “zero” — as part of its “maximum pressure” strategy to wring a new agreement out of Teheran after the US withdrew from the Iran nuclear deal — was not going to work.

Given its impracticality, such an ill-conceived policy was bound to fail.

Because there is no viable substitute for Iran’s current oil exports that amount to around 2.5 million barrels a day, the global crude market has already experienced big volatility due to the planned US sanctions. This has brought unnecessary uncertainties to the world economy that is still struggling to recover.

For the US sanction plan to work, it would have required endorsement and cooperation from all major players in the international arena.

Yet so far three of Iran’s five largest buyers — China, India and Turkey — have rejected US requests to end their oil purchase, not only out of consideration for their own economic interests, but also to say no to the US trying to use its domestic law to impose its will upon others.

European countries were even considering implementing a so-called Special Purpose Vehicle — similar to a barter system to exchange Iranian oil for European goods without money changing hands — to bypass the proposed US sanctions.

All this suggests that the Donald Trump administration’s pressure campaign against Iran does not have the backing of the rest of the international community.

Washington should really consider a change of approach and uphold the negotiated settlement on the Iran nuclear issue, as its hostile stance toward Iran is achieving little except to raise questions about how capable the current US administration is of continuing to claim US global leadership.