Oil and Gas: US to "take a look" at Shell's Iran deal

The US State Department has said it will "take a look at" a controversial agreement signed by Royal Dutch Shell that could ultimately lead to a multi-billion dollar investment in Iran.

US legislation permits Bush to take action against non-US companies investing in Iran's energy sector. However, the Financial Times reports that because of concerns over an extra-territorial trade dispute and the risk of further alienating allies, no foreign companies have been penalised to date under the Iran Libya Sanctions Act and the subsequent Iran Freedom Support Act.

Sean McCormack, a state department henchman, said that US government lawyers and policymakers would take a look at the Shell deal, to see whether to take any action. "If there's an investment greater than a certain amount, as specified in US law, then our lawyers take a look at it and the policymakers take a look at it, and see if there's any further steps that we, as a government, take."

Post: 5/10