EMEA News
EU Allows Iran Oil Insurance
The European Union (EU) will suspend a ban on insuring and transporting Iranian oil cargoes on January 20 under the terms of an international deal, Reuters reports.
"We would welcome the relaxation," said Andrew Bardot, executive officer of the International Group of P&I Clubs.
"We see it as a move in the right direction towards ensuring that ship owners that are carrying these oil cargoes can have access to proper insurance and liability insurance cover."
The six-month suspension, agreed to in a Nov. 24 agreement, will cover a ban on insurance and transportation for the nation's oil, as well as trade in petrochemicals, gold, and other precious metals.
The suspension of the sanctions will take place if the International Atomic Energy Agency (IAEA) confirms that Iran is following the agreement's limitations on its nuclear program.
European P&I clubs insure most of the global oil tanker market.
Even with the suspension of the sanction rules, Bardot said it will take time for insurers to extend coverage to the oil, a move that will be complicated by continuing sanctions on some Iranian companies including the National Iranian Tanker Company (NITC).
The U.S. will also lift some sanctions, ultimately unblocking Iran's access to $4.2 billion in oil revenues over the course of the six months.
George Belekos of KPI Bridge Oil told Ship and Bunker readers Monday that the deal with Iran could bring one million barrels per day of Iranian oil into the global market starting January 20.
