Editor’s Note: The following report is excerpted from Joseph Farah’s G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.
WASHINGTON – In a further effort to skirt Western oil sanctions against Iran’s sale of its own oil, Tehran now is offering very favorable credit terms to Asian customers, including India, according to a report in Joseph Farah’s G2 Bulletin.
It is offering 180 days of free credit, which amounts to a monthly discount of up to $1.50 a barrel. There is debate, however, on the extent such an offer of easy credit will lure existing or new customers.
China and India already are on record in saying that they don’t intend to honor the unilateral sanctions imposed by the United States and the European Union against Iran’s sale of oil or the country’s central bank transactions.
Such Middle East oil-producing countries as Saudi Arabia generally extend a 30-day credit, while allowing certain other oil importing countries such as China up to 90 days.
According to regional experts, Iran’s offer amounts to a 7.5 percent discount on every $118 barrel of oil. Increasingly, Iran also is making deals with countries needing oil to trade in their own currencies, thereby bypassing Western sanctions by avoiding the use of the U.S. dollar or the European Union’s Euro.
As G2Bulletin previously reported, a number of the so-called BRICS countries not only are producers of oil but others heavily rely on Iran’s oil.
The BRICS countries are Brazil, Russia, India, China and South Africa. Like India and China, South Africa now has informed the U.S. and E.U. that it, too, will continue buying Iranian oil.
Given the volume at which these three countries purchase Iranian oil, the easing of credit terms would be quite appealing.
There also is the growing prospect that if these countries do not comply with the enhanced U.S. sanctions by June, the U.S. could bar any further trade with them, as the sanctions now require. That in turn could cause serious political repercussions in U.S. relations with China and India, which sources say already is being felt in New Delhi.
Keep in touch with the most important breaking news stories about critical developments around the globe with Joseph Farah’s G2 Bulletin.