Analysts at Rabobank point out that the US re-imposed sanctions on Iran as of 4:00GMT this morning (with more to follow in November); that is encouraging the Iranian currency to keep doing a good impression of butter under a hot knife.
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“The EU, however, is having none of this, and has introduced its own blocking statute for the first time, which basically acts as a legal nullifier of US sanctions. Europe has far greater business ties with Iran than the US, meaning sizeable damage to EU corporations from the pressure from the US to withdraw.”
“Irrespective, this move will obviously infuriate the US, whose patience with the EU and NATO is already clearly limited. The risk is for further downward pressure on EUR. Moreover, in very short order we will find out if that statute is effectively toothless.”
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