Presidential Determination Pursuant to Section 1245(d)(4)(B) and (C) of the National Defense Authorization Act for Fiscal Year 2012

This presidential determination finds that global petroleum markets have sufficient non-Iranian supply to allow significant reductions in Iranian oil purchases through foreign financial institutions. It continues sanctions policy under the 2012 NDAA by maintaining the legal basis for countries to avoid U.S. financial sanctions if they significantly reduce Iranian oil imports.

Federal Register Open PDF 77 FR 76213

Impact dates

Dec 7, 2012
Determination effective; Secretary of State to publish in Federal Register

Key directives

Determine sufficient non-Iranian petroleum supply exists to permit significant reduction in Iranian oil purchases
Direct Secretary of State to publish determination in Federal Register
Continue monitoring market conditions to accommodate reduced Iranian oil purchases

Who is ordered

Timeline

Immediate

Determination takes effect upon signing; maintains legal framework for Iran oil sanctions

Near term (90d)

Continued monitoring of global oil market conditions by administration

Long term

Ongoing enforcement of Iran oil import reduction framework; potential future determinations based on market conditions

Risks & tensions

Determination is contingent on volatile global oil market conditions; future price spikes could undermine sanctions viability
Maintains coercive economic pressure on Iran with potential spillover effects on allied economies dependent on oil trade
Text notes consistency with prior March 30, 2012 and June 11, 2012 determinations, suggesting iterative policy without fundamental change