It appears Donald Trump, former reality TV host and current President of the United States, just announced plans to impose sanctions against Iran on November 5, via a fake Game of Thones-esque poster on Twitter.
The Iranian president, Hassan Rouhani, has responded robustly. This was a major impediment for India as it is heavily dependent on Iranian oil. These sanctions hit at core areas of Iran's economy.
U.S. oil futures climbed to a four-year high near US$77 a barrel last month on growing concerns there could be a shortage as sanctions bite deeper.
Why is America imposing sanctions?
Trump was referring to a host of new sanctions set to be imposed on Iran by the United States after Washington ditched an agreement reached under Barack Obama's administration to lift sanctions in exchange for controls over Tehran's nuclear programs.
As a result, sanctions lifted by the USA and others in 2016 are now being unilaterally re-imposed by the United States.
Mr Pompeo said: "Our ultimate aim is to compel Iran to permanently abandon its well-documented outlaw activities and behave as a normal country".
Pompeo said that the countries receiving waivers had agreed that payments for the oil will be sent to special bank accounts that Iran will only be able to access if it is using the funds for "humanitarian trade, or bilateral trade in non-sanctioned goods and services".
How will U.S. sanctions work? "I want to escape from Iran", said Essam, an accountant, who is disgusted with both the US and Iranian governments.
Mnuchin said today that SWIFT "would be subject to US sanctions if it provides financial messaging services to certain designated Iranian financial institutions" and that the U.S.
Asked which institutions would be cut off from the network, Mnuchin responded that a list would be released Monday and "will be substantially longer" than the list of institutions that had previously been disconnected under sanctions prior to the nuclear deal. It is widely expected that Japan, South Korea and India will also receive waivers.
"A large part of the impact has not happened yet", said Mike Wittner, head of oil-market research at Societe Generale SA.
Even if Iran can continue to sneak oil out of its ports, it will find it hard to get the cash into its accounts.
That could make it very hard for Iran to do business with other countries.
"It can't handle oil in any serious volume", said Henry Rome, a specialist on Iran sanctions for the Washington-based Eurasia Group consultancy. "The transaction itself will be problematic". "The other six will import at greatly reduced levels".
"According to information we received, Turkey will be among the eight countries allowed by the U.S.to continue importing Iranian oil, but we have no further details yet", Donmez told reporters at parliament.
The last time global sanctions were imposed on its oil industry between 2010 and 2016, Iran's exports fell by nearly a half. Demonstrations also were held in other Iranian cities, The Associated Press reported.
"The administration has indicated it will not support requests by foreign governments or companies for exemptions", the report said.