The EU’s Iran Oil Sanctions Could End Up Affecting 95% Of Tankers

oil tanker

Here’s further proof that the EU’s sanctions on Iranian oil may be more complicated than previously thought.

The sanctions will extend to about 95 per cent of tankers because they are insured under rules governed by European law, Bloomberg reports.

This means that even non-EU tankers carrying Iranian oil to countries outside the 27-bloc EU risk having their cover against risks including spills and collisions invalidated.

Ship owners will have to find “questionable” insurance that doesn’t comply with EU law, and whose provider can meet the $1 billion “standard cover provision” for pollution liabilities, Simon Schnorr, a London-based marine client director at Aon Risk Solutions told Bloomberg. Ships without valid insurance would be barred from entering most ports.

You move, Iran.