Weekend Economists Go Full Tin Hat November 22-24, 2013

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21. Iran to Reap $7 Billion in Sanctions Relief Under Accord

http://www.bloomberg.com/news/2013-11-24/iran-to-reap-7-billion-in-sanctions-relief-under-accord.html

Iran will get as much as $7 billion in relief from economic sanctions over six months under the first-step agreement reached today in Geneva, the Obama administration said.

In return for Iran limiting its nuclear program, the interim agreement provides for the release of $4.2 billion in frozen oil assets and will let Iran continue exporting oil at current levels, rather than forcing continued reductions by buyers, as would be required under current law, according to a White House statement.

The accord also will “suspend certain sanctions on gold and precious metals, Iran’s auto sector and Iran’s petrochemical exports, potentially providing Iran approximately $1.5 billion in revenue,” the administration said.

Sanctions have cost Iran $120 billion in lost revenue since the U.S. and European Union started imposing strict penalties on energy, ports, insurance, shipping, banking and other Iran-related transactions in 2010, according to U.S. Treasury estimates. While almost all U.S. trade with Iran has been banned for decades, other than food and medical supplies, U.S. restrictions now apply to other countries that trade with the Islamic Republic.