Let’s Not Get Ahead of Ourselves: U.S. Warns Against Oil Investment Rush in Iran

By April Kent

At the beginning of October, Iranian Oil Minister Rokneddin Javadi invited foreign investors to help develop its oil fields and improve pipeline and refinery infrastructure in the country. This past Friday, Reuters has reported that the U.S. State Department recently cabled a “demarche” to embassies around the world to reiterate that sanctions on Iran are still in place and will not be lifted until the International Atomic Energy Agency verifies compliance with the terms of the Iran Nuclear Deal. The U.S. wants to prevent a rush by Western companies to invest in Iran’s oil industry and other businesses. European oil executives from Royal Dutch Shell and Eni have already been sending small teams to Iran to meet with Iran’s oil minister about potential opportunities. American companies, on the other hand, face tighter restrictions: the Iran Nuclear Deal does not include easing many of the sanctions that have prevented U.S. companies themselves from doing business in Iran.