WASHINGTON, DC – October 10, 2012 – Michael Burton, a partner in the firm’s International Trade practice, was quoted in a Wall Street Journal article on Iran’s declining oil sales and the potential for new sanctions against the Islamic republic.

The article reported that “recently enacted sanctions and further proposed restrictions are set to tighten the noose at both ends, by hindering the Islamic republic’s ability to ship the commodity and to be paid for it. Mohammad-Reza Bahonar, Iran’s deputy speaker of parliament, recently said that oil exports stood at one million barrels a day in September, a slight rebound from 800,000 barrels in the summer.” In particular, the United States introduced restrictions earlier this summer that curbed dealings with the Central Bank of Iran and resulted in a sharp hit on oil revenue.

In September, the US Treasury Department concluded that Iran’s national oil marketing firm was linked to the country’s Revolutionary Guards. Mr. Burton asserted that the link could force all foreign financial institutions to sever their dealings with National Iranian Oil or face the risk of losing access to the US banking system. Mr. Burton noted that the move “will increase pressure on NIOC to rely on nontraditional payment methods,” such as bartering or using private brokers and banks not dependent on the US market.

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