Sounds like China complied ?Update 2:45p – State Department released a statement from Secretary of State Hillary Clinton:
Today I have made the determination that two additional countries, China and Singapore, have significantly reduced their volume of crude oil purchases from Iran. As a result, I will report to the Congress that sanctions pursuant to Section 1245(d)(1) of the National Defense Authorization Act (NDAA) for Fiscal Year 2012 will not apply to their financial institutions for a potentially renewable period of 180 days.
Looks to me like China has the power to bring Iranian economy to its knees and Terran to the negotiating table.
Some 10 days ago, there was an article saying that US State Department observed that China reached the required level of reduction (on a YoY basis) that will give her the possibility to be exampted. I posted the article in an old thread called "India exempted of sanctions, China not".
In fact, Iran is in a difficult situation. Even if she can't sell all the oil she pumps, she can not stop pumping either, because this will damage the wells. For that reason, Iran continues production but much of the oil is just stored. There were reports about Iranian tankers that are filled with oil without leaving the harbors, just to store the oil.
When Iran will run out of storage capacity, she will be forced to stop pumping in some of her wells. This will harm its economy on the medium term because the damage to the wells will be expensive to repair.
oh ok. makes sense. Terran is indeed in a bind with excess oil production. They may have to offer up some of their oil for free to save the wells