US to reimpose sanctions on Iran from tomorrow

The United States will fully enforce sanctions against Iran from Aug.7, The Washington Post reported, citing Secretary of State Mike Pompeo.

Sanctions will be re-applied on Iran’s purchase of US dollar, gold and precious metals trade, coal, carpets, foodstuffs, industrial-related software and on certain financial transactions.

In May, the US pulled out of a 2015 deal between world powers and Tehran under which international sanctions were lifted in return for curbs on its nuclear program.

The Trump administration has told other countries they must halt all imports of Iranian oil from Nov. 4 or face US financial measures.

Meanwhile, Iranians have started to hoard gold as a safeguard against the collapsing local currency (Rial), amid soaring costs of living. 

Last week, the World Gold Council said demand for gold bars and coins in Iran tripled year-on-year in the second quarter to about 15 metric tons.

Iran’s central bank has been minting new coins, estimated to be more than 60 tons of gold in total, to feed the local demand.

The price of an Emami, a central bank-minted gold coin weighing 8.13 grams, stood at around 36 million Rials on Sunday, more than double its price in January.

It had hit a record of more than 45 million Rials a week ago, Wall Street Journal reported.