Every country which has a commodity that can be sold to the world looks to sell it the world, however in the world of geopolitics, not every country is going to be in good standing or in favor with the biggest economies of the world.
In an article by Bozogmehr Shafafedin and Julia Payne of Reuters, in the case of Iran it has the 4th largest reserve of oil and gas in the world, but the US has imposed sanctions on it. Oil and gas are being sold, often through third and fourth suppliers but China and Japan are buying Iranian oil. Iran had been suppling parts of Afghanistan with oil and gas, but with the recent changes in administration, it was shut down for fears of safety.
Iran has resumed fuel exports to Afghanistan through Iran Oil, Gas and Petrochemical Products Exporters’ Union The Taliban sent messages to Iranian traders and an Iranian Chamber of Commerce which has close links to the government. The government agency Islamic Republic of Iran Customs Administration (IRICA) has taken off the ban of selling the oil.
Iran has been selling oil to Afghanistan before the administration to the tune of $367 million of imports, mostly fuel between March 2020 and March 2021. The next two important suppliers are Turkmenistan and Uzbekistan with trade of oil valued at $257 million and $236 million respectively.
Trade between Iran and Afghanistan is expected to increase, because of the sanctions it was limited in public visibility and now with the change it should be more open.
Linking to dividend paying stocks, all companies want to deal with consumers who are buyers of their services and products, sometimes governments for reasons will want to limit markets until something better happens between the 2 countries. If the consumers demand the products, sometimes where there is a will, there is a way. How does your investments deal with global political concerns?
There are more questions than answers, till the next time – to raising questions.