US – Iran sanction could affect SA

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Economist, Dawie Roodt says the US decision to unleash its toughest ever sanctions against Iran on Monday could place South Africa in a compromised situation, as it enjoys good relations with both countries.

The Trump administration is re-instating all sanctions that were removed under the 2015 nuclear deal, which President Donald Trump abandoned in May.

The sanctions will hit Iran’s oil exports, shipping and banks – all core parts of its economy. Roodt thinks South Africa should keep a low profile on the issue, for now.

“This is a difficult one for SA because SA has relatively good relations with Iran and do good business with Iran – but at the same time we have good economic relations with the US. And Trump has made it known that if people don’t play the game according to his rules, then they cannot get the benefits that he dishes out as the US. The best for SA is for SA to do nothing for now but the moment there is pressure from the US it would be better for SA to choose the side of the US. But for now, try to do nothing and stay below the radar.”

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