Oil prices keep dropping, sparking optimism in markets after a tentative agreement between United States and Iran. But questions hang over what this means for Chinese firms hit by past sanctions for Iran dealings. Analysts warn: don't expect quick sanction relief.
“New purchases of Iranian oil ostensibly wouldn’t be subject to fresh sanctions,” said Lynn Song, chief economist for Greater China at ING. Yet,she added,“I imagine we won’t see rush to lift existing sanctions on Chinese importers of Iranian oil.” Her view mirrors broader market hesitation.
Even with crude prices falling,Nick Marro, principal economist for Asia at Economist Intelligence Unit, advised caution . He sees room for optimism,especially in commodities and financial markets . “There are reasons for optimism,but I still think we should be cautious about this now,” Marro said, noting potential Israeli interference in region.
As situation unfolds,all eyes will be on deal's durability against geopolitical pressures and its effect on sanctions against Chinese entities trading Iranian oil…
