Dividends and Iran boosts gas oil sales to neighors, defying US sanctions

Every once in a while, the US rattles its sword against Iran for a wide variety of reasons. The problem for the US is Iran primary export is oil and other countries need the oil.

In an article by Bozorgmehr Sharadein and Ahmad Ghaddar of Reuters, Iran is selling its oil to its neighbors – Iraq and Syria by offering discounts, which defy US sanctions.

Exports of gas oil, a refined product used in heating, power generation and transport surged to 95,00 barrels a day in the 4th quarter of 2019, more than 80% higher than the previous quarter and nearly 4 times higher than the first quarter, data from consultancy FGE showed.

The oil is either goes by ship or truck to Iraq, Afghanistan, Pakistan and Syria. Unlike crude oil where the ultimate buyer is a refinery, products such as gas oil, which is refined in Iran, can find their way to thousands of industrial or residential buyers.

US Sanctions have an effect on business, it makes it harder but not impossible. Creativity plays a role.

Linking to dividend paying stocks, in all markets there are government policy which is both helpful or offers greater challenges. Since US Sanctions can not put people in jail, just put holds on US assets, other alternatives can be used. There is no rule which says all transactions have to be made in US dollars for there are alternatives. Similarly in your investing, it is better to stay within the rules and you will likely achieve old age.

There are more questions than answers, till the next time – to raising questions.

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