Analysis: Global shipping industry braces for new sanctions on Iran

Analysis: Global shipping industry braces for new sanctions on Iran

Singapore (Platts)--9 May 2018 The US decision to reinstate sanctions on Iran over its nuclear program, may result in more trade, to and from the Persian Gulf country, on ships controlled by European companies, but credit finance related hassles cannot be ruled out, market participants Wednesday said.

Related feature -- Iran Sanctions: Global Energy Implications

The development is significant as it can have serious implications on trade flows with billions of dollars worth of commodities being moved regularly in and out of Iran by trading and shipping companies such as Vitol, Glencore, Torm and Maersk Tankers.

"The main issue of concern is credit financing because almost all major international banks have transaction linkages with New York," a Singapore-based ship chartering executive with a global commodities trading company said.

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