In anticipation of the US sanctions against Iranian oil exports, which were reimposed by the Trump Administration on Monday (along with additional sanctions on everything from Iranian shipping to banking and insurance), oil tankers bearing the Iranian flag have embraced a stealthy approach to keeping the oil flowing: They’re ‘ghosting’ international trackers by turning off their transponders, rendering the ships impossible to track by anything aside from visual cues. [bold in original]
This is from Tyler Durden, “Iran’s ‘Ghost Ships’ Evade Oil Sanctions by Turning Off Trackers,” ZeroHedge, November 7, 2018.
What about the Trump administration’s attempt to cut off Iran’s access to the international financial system? There’s some good news there too. Durden writes:
Meanwhile, the “special purpose vehicle” – a kind of SWIFT alternative designed explicitly to help European companies avoid detection by the US – is helping to facilitate clandestine payments for Iranian crude, eliminating another methodology for tracking who, exactly, is buying Iranian crude. Iranian president Hassan Rouhani has said Iran will defy US sanctions, though both sides have insisted that they remain “open” to negotiations surrounding a new deal.
Why is this good news? Because it makes trade somewhat less easy to stop. That helps Iranians and it helps those who trade with them.
I’ve written on sanctions against Iranians and against Cubans.
See also “Sanctions,” by Kimberly Ann Elliott, Gary Clyde Hufbauer, and Barbara Oegg in David R. Henderson, ed., The Concise Encyclopedia of Economics, for a thorough treatment.
READER COMMENTS
Thaomas
Nov 10 2018 at 8:05am
Agreed that these are good news in the short run in minimizing the damage of the Administration’s ill conceive policy. In the long run it wold be better to maintain a unified global payments system (and the USD as its cornerstone) and trade according to agreed rules.
Alan Goldhammer
Nov 10 2018 at 4:22pm
David – I might have a little more regard for this post were the primary reference not from Zero Hedge. While the Tyler Durden of “Fight Club” was a good cinematic character, there is no reason for a blogger to hide behind a pseudonym unless he/she has something to hide (maybe it’s really Brad Pitt!).
David Henderson
Nov 11 2018 at 11:38am
Alan,
It would have been nice if they had provided links. I just noticed that they didn’t. It struck me that they wouldn’t have made up something so specific. Liars are generally not good on details. But I agree if your point is that I should have checked for backup. So touche.
Re having something to hide, would you similarly discount Scott Alexander’s blog posts?
Garrett
Nov 17 2018 at 11:32pm
Lots of people working in industry have work policies against running social media related to their work. If they want a voice anyway it has to be pseudonymous or anonymous.
David Seltzer
Nov 13 2018 at 12:36pm
It seems to me the fundamental problem is Trump’s autocratic approach, writ large. To wit. Carrier and Ford will be taxed if they continue building their products in Mexico. Harley Davidson defied Trump over foreign tariffs. People don’t like despots and will resist them. Let’s hope for more good news.
Comments are closed.