Iran

In an unexpected reversal, President Obama declined to sign a renewal of existing sanctions against Iran but let it become law anyway, in an apparent bid to alleviate Tehran’s concerns that the U.S. is backsliding on the nuclear agreement. The White House press secretary Josh Earnest said Obama had decided to let it become law without his signature. Press TV reports: The US Senate passed a 10-year extension of the Iran Sanctions Act (ISA) on December 1, sending the measure to the White House for Obama to sign into law.

Until now, Iran's angry outbursts in response to alleged breaches of Obama's nuclear deal as well as extensions of the Iran sanctions, have been relegated to verbal outbursts, culminating most recently with the threat by Iran's defense minister Denghan that should Trump end Obama's landmark arrangement with Iran, it would result in a war which "would mean the destruction of the Zionist regime (Israel) ... and will engulf the whole region and could lead to a world war."

A furious Iran threatened to retaliate early Friday against a U.S. Senate vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year's deal with six major powers that curbed its nuclear program.  The ISA was first adopted in 1996 to punish investments in Iran's energy industry and deter its alleged pursuit of nuclear weapons; it was due to expire on Dec. 31. Lawmakers said the extension would make it easier for sanctions to be reimposed if Iran violated the nuclear settlement. The extension was passed unanimously on Thursday.

Going into the Algiers OPEC meeting in late September, the prevailing sentiment among the analyst community was that there is no way any deal will get done: after all there was no secret that the recent animosity between Iran and Saudi Arabia had recent reached unprecedented levels, with both side directly involved across from each other in the Syrian proxy war.

However, the deal did happened, surprising virtually everyone, and based on a new Reuters report, it was thanks to one man.

Oil continued to rise higher, now over 7% sending Brent above $50 for the first time since October, after Saudi Energy Minister Khalid al-Falih said on Wednesday OPEC was close to clinching a deal to limit oil output, adding Riyadh was prepared to accept "a big hit" on its own production and agree to arch-rival Iran freezing output at pre-sanctions levels. The comments was interpreted as a compromise by the Saudis who in recent weeks insisted that Iran fully participate in any cut.