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

Energy & Environment Defense & Security Trade Economy & Labor

In simple terms

This presidential determination certifies that global petroleum supplies from non-Iran sources are sufficient to allow foreign financial institutions to significantly reduce purchases of Iranian oil without disrupting markets. It continues a sanctions mechanism established by the 2012 NDAA by making a required periodic finding, maintaining the legal basis for pressuring Iran's oil exports.

Federal Register Open PDF 79 FR 33841

Record & deadlines

Jun 4, 2014Signed
Signed by the President
Jun 12, 2014FR published
Published in the Federal Register · 79 FR 33841
Federal Register PDF
Jun 4, 2014
Determination effective; Secretary of State to publish in Federal Register

Key directives

Determine sufficient non-Iran petroleum supply exists to permit significant reduction in Iranian oil purchases by foreign financial institutions
Continue monitoring global oil supply situation closely
Secretary of State to publish memorandum in Federal Register

Who is ordered

What to expect

Immediate

Determination takes effect upon signing, maintaining sanctions framework

Near term (90d)

Continued monitoring of global oil supply conditions

Long term

Sustained pressure on Iranian oil exports through financial sanctions architecture

Risks & tensions

Determination relies on subjective assessment of 'sufficient supply' and 'significant reduction' without quantitative thresholds
Continued dependency on periodic presidential determinations creates policy uncertainty
Sanctions pressure on Iran oil exports may conflict with allies' energy security needs