Lloyd’s Won’t Insure or Reinsure Petroleum Shipments for Iran

Lloyd’s of London will not insure or reinsure petroleum shipments going into Iran, the insurance market said on Friday.

U.S. President Barack Obama signed into law last week far-reaching new sanctions that aim to squeeze the Islamic Republic’s fuel imports and increase its international isolation.

“The U.S. is an important market for Lloyd’s and, in recognition of this, the market will not insure or reinsure refined petroleum going into Iran,” Lloyd’s General Counsel Sean McGovern told Reuters in a statement. “Lloyd’s will always comply with applicable sanctions,” McGovern added.

The United States and its European allies suspect Iran is trying to build an atomic bomb. Tehran has said its nuclear program is for the peaceful generation of electricity.

Iran has already found it harder to secure trade finance. A number of oil companies, trading houses and other international companies have stopped doing business with the country this year fearing they may fall foul of U.S. sanctions.

Oil traders told Reuters on Thursday Iran is buying around half of its July gasoline imports from Turkey and the rest from Chinese sellers as most other suppliers have stopped selling.

(Reporting by Jonathan Saul; editing by Barbara Lewis and Anthony Barker)