President Donald Trump is expected to announce that he will allow sanctions on Iran to go forward, a significant step toward ending the nuclear agreement, CNN reports.
Trump, who has sharply criticized the agreement in the past, could not be convinced to allow a waiver on the sanctions to go forward, even after visits from the leaders of France and Germany, according to The Washington Post. Both nations warned Trump that nullifying the agreement could cause all-out war in the Middle East.
He said Monday that he would announce his decision on the deal on Tuesday at 2 p.m. from the White House.
Congress imposed sanctions on Iran in 2012. They require that other countries lower their oil imports from Iran or face sanctions on their banks and financial transactions. These sanctions have been waived as part of the Iran nuclear deal, but those waivers must be signed every 120 days, and the current deadline is this Saturday.
However, these sanctions could have a limited impact compared to the effect they had during former President Barack Obama's administration, with only 300,000 to 500,000 barrels of Iranian oil per day being taken off the market, compared to 1 million to 1.5 million barrels per day under Obama, according to CNBC.
"This time, we don't think it will be anywhere near as successful as it was in 2012," Edward Morse, Citi's global head of commodities research, told the network. "This time, we think the easy pickings are just more limited.”
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