US and G7 Impose More Sanctions on Iran

Also read: Government Prepares Incentives for Importing Industrial Raw Materials from the Middle East

The cause of the sanctions was Iran's attack on Israel on Sunday (14/4/2024). The reason Tehran sent hundreds of drones and missiles to Israel was in response to Israel's attack on the Iranian Embassy in Damascus, Syria on April 1. In the attack a number of Iranian officers were killed, including two generals.

In essence, Iran has already been subjected to similar sanctions for developing a nuclear program, even though the country is not among those allowed to possess nuclear facilities and infrastructure.

Despite the sanctions, Iran's oil production continues to be abundant and does not lack buyers. This is because China, the world's number one oil consumer, buys from both Iran and Russia, which is now also under sanctions for invading Ukraine since February 2023.

Despite the evolving information, we at the G7 are advocating for de-escalation

In the latest sanction, all ships, ports, and companies that import or distribute oil from Iran are prohibited from operating in the US for two years. Nevertheless, there is still a loophole in the sanction, where the US President can provide relief if the implementation of the sanction causes an increase in oil prices.

Also read: Market is worried that supply will be disrupted, oil prices will rise again

Oil prices rise

On Friday morning, the price of Brent crude oil rose by 3.94 percent to 90.54 US dollars per barrel due to allegations of an Israeli attack on Isfahan, Iran. Meanwhile, the price of West Texas Intermediate (WTI) crude oil rose by 4 percent to 86.09 US dollars. The price of oil then fell on the same day. Brent became 87.28 US dollars per barrel and WTI became 82.61 US dollars.

In addition to the US, member countries of the Group of Seven (G7), the world's richest nations, have also imposed sanctions on Iran. The G7 meeting was chaired by Italy on Friday. After the meeting, Italian Foreign Minister Antonio Tajani said that the US had informed the meeting that Tel Aviv had notified Washington of the movement of Israeli unmanned aircraft in Iranian territory early Friday morning.

However, both Israel and US information presented at the G7 meeting did not mention the word "attack". Until now, neither Iran nor Israel has issued a statement that the event of the sound of an explosion in Isfahan was an attack.

Also read: Explosions in Iran, No Reports of Missile Attacks Yet

"Despite the evolving information, we at the G7 are advocating for de-escalation," said Tajani. The G7 also asked for de-escalation followed by a ceasefire, the release of Israelis still being held hostage by Hamas, and the provision of social assistance to Palestinians in Gaza.

Explosion in Isfahan

Tehran and Tel Aviv still do not want to provide an explanation regarding the cause of the explosion in Isfahan. However, The New York Times newspaper quoted an unnamed US official as confirming that the explosion was indeed the result of an Israeli drone attack on Iran. The drone was fired upon by an Iranian missile.

From Iran, an official statement was made by the Chief of Staff of the Iranian Army, General Abdolrahim Mousavi. "There were no casualties or damage to infrastructure from the early morning explosion incident," he said.

Also read: Measuring the Impact of New Western Sanctions on Iran

Israel often attacks Iran's interests, which they accuse of supporting the armed group Hamas. Since the Operation Aqsa Storm on October 7, 2023, which was launched by Hamas against Israel and resulted in the deaths of 1,200 people, Israel retaliated by striking Gaza. The death toll in Gaza reached 34,000, with a majority of children and women. Israel also launched an operation to remove various Hamas leaders residing in Iran and Syria.

The International Atomic Energy Agency (IAEA) issued a statement that from the results of their monitoring, there was no damage to Iran's nuclear facilities in Isfahan. The city has three nuclear reactors.

"The IAEA requests immediate de-escalation and for nuclear facilities to never become targets in conflicts," said a quote from the press statement.

Also read: The Middle East and the World Cannot Afford One More War

The British military is concerned that the events in Isfahan could lead to increased tensions in the Middle East, one of which could provoke aggression from the Houthi rebel group in Yemen. Therefore, the British asked their ships sailing around the Middle East to be careful.

As a form of solidarity with Palestine, since October 2023, the Houthis have attacked 53 merchant ships crossing the Red Sea. One of the ships was sunk by the Houthis and the other was captured. (AP/AFP)