New U.S. sanction on Iran to ban gold-for-gas trade

Windsor Genova – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – The chief economist of New York-based global financial services company BGC Partners has hinted that new sanctions against Iran the U.S. Senate is planning will ban gold trade with the Islamic state.

Özgür Altuğ’s statement issued Wednesday said the new sanction could force Turkey to stop paying for Iranian gas with gold bullions.

A source from the U.S. Senate was quoted by Turkish newspaper Hurriyet Daily that the chamber is drafting a that will ban insurance on shipments of a wider range of goods, including gold, to Iran.

The statement came following Turkish Deputy Prime Minister Ali Babacan’s admission last week that Iran buys gold from Turkey using Turkish lira to serve as payment for natural gas that Turkey imports from Iran. The scheme circumvents U.S. sanctions that ban banks from transacting with Iran in a bid to force Tehran to stop its nuclear program.

Turkey exported $6.4 billion worth of gold to Iran from January to September.

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