- News code: 1472720
On 20 September 2020, the USA applied the Dispute Mechanism (a structured process that addresses disputes or grievances that arise between two or more parties engaged in business, legal, or societal relationships) unilaterally through which President Donald Trump aimed to apply more sanctions against Iran, although Iran had an opposite point of view regarding its application. The initial outcome of this mechanism was observed in USD exchange rate that increased drastically.
On 20 September 2020, the USA applied the Dispute Mechanism (a structured process that addresses disputes or grievances that arise between two or more parties engaged in business, legal, or societal relationships) unilaterally through which President Donald Trump aimed to apply more sanctions against Iran, although Iran had an opposite point of view regarding its application. The initial outcome of this mechanism was observed in USD exchange rate that increased drastically.
The long-term impacts of this decision can be seen within the next few weeks that which countries will obey the USA's decision.
As it was expected, USD increased against Rial and also by the coincidence of influenza and new wave of COVID-19 in the autumn and new limitations of global quarantine, the demand of fuel and oil decreased and as a result, Iran decreased the VB rate about 6-7$/MT and issues like “Snapback Mechanism” and the USA presidential election led to the decrease of demand in the market, hence the future status of the market cannot be analyzed easily.
Based on the current situation, Razieh Gilani, the account manager of Infinity Galaxy recommends not to look at the business of bitumen as an investing market and the strategy of purchase- sale can be the best possible way till the middle of November 2020 (after the USA presidential election).
