Blowback or blowhard

23 July 2018 By George Hay Follow @gfhay

The president’s Twitter attack on Tehran counterpart Hassan Rouhani doesn’t sound great for importers of Iranian crude. Yet U.S. sanctions policy is volatile – just ask Russia’s Rusal. Another Trump goal – low petrol prices – implies Iranian exports will still be tolerated.

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U.S. President Donald Trump on July 23 told Iran it risked consequences “the like of which few throughout history have suffered before” if the Islamic Republic made more threats against the United States.

His words, spelled out in capital letters in a late night Twitter message, came hours after Iranian President Hassan Rouhani said that hostile U.S. policies towards Tehran could lead to “the mother of all wars”.

In his message directed at Rouhani, Trump wrote: “Never, ever threaten the United States again or you will suffer consequences the likes of which few throughout history have ever suffered before. We are no longer a country that will stand for your demented words of violence & death. Be cautious!”

Earlier on July 22, Rouhani had told a gathering of Iranian diplomats: “Mr Trump, don't play with the lion's tail, this would only lead to regret”.

Separately, Reuters reported on July 21 that the U.S. Treasury was open to removing Russian aluminium producer Rusal from a sanctions list.

Rusal’s Hong Kong-listed shares rose 14.8 percent on July 23 to close at HK$2.4. Brent crude prices rose 1.3 percent to $74 at 1150 GMT.

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