U.S. grants eight countries Iran sanctions waivers

India and South Korea Win Waivers From Iranian Oil Sanctions, but the Pressure's Still On

India and South Korea Win Waivers From Iranian Oil Sanctions, but the Pressure's Still On

According to sources in the know, India is close to a deal with the U.S. that will allow it to continue buying crude oil from Iran without attracting any sanction after it agreed to cut imports and escrow payments.

Iran's biggest oil customers - all in Asia - have been seeking sanctions waivers to allow them to continue buying some of its oil and have argued that a total ban would spur a further rally in the price of crude.

A list of all countries getting waivers was expected to be released officially on Monday, Bloomberg said.

The waivers are only temporary, and the US will expect countries that get them to keep cutting Iranian imports in the months ahead, according to the USA administration official, who declined to give details on the volume of oil the nations will be allowed to buy under the exemptions.

Indian oil companies have been allowed to continue importing about 2.5 million tons of Iranian crude per month until March, sources familiar with the matter told the Economic Times.

In May, the U.S. brought back sanctions on Iran after withdrawing from the Iran nuclear deal which was struck in 2015.

Goldman Sachs said it expects Iran's crude exports to fall to 1.15 million bpd by the end of the year. Indian officials, in their discussions with United States counterparts have pointed out that first, Indian refineries are configured to work with Iranian crude, and second, Iran still offers better credit, insurance and freight terms to Indian buyers, which remains a key consideration.

More news: Leicester 1-1 West Ham
More news: India unveils world’s tallest statue
More news: PM Modi accorded warm welcome on his arrival in Japan

Lack of clarity is still dominant regarding both Iranian exports and potential US waivers, but Iran's top two oil buyers-China and India-are not bringing their imports down to zero. Iran could mix its oil with crude from neighboring Iraq, sell on the black market or try a barter system supported by the European Union. "I don't know whether these waivers are permanent or temporary", state TV quoted Iran's Deputy Oil Minister Ali Kardor as saying. The contract has fallen 12 percent since the beginning of October. The waivers "look likely but not yet formally decided", a government official told The Hindu, indicating that the final word rests with U.S. President Donald Trump who must sign them before November 4.

However, he said, he had not received written notification regarding the possible exemption. The spokesperson of the Ministry of External Affairs said India has been in talks with the U.S.as well as with Iran to ensure uninterrupted energy supply.

USA hardliners want to press ahead on SWIFT, but others argue to keep the option as a bargaining card with the Europeans and say that SWIFT access remains useful in tracking Iranian transactions.

Among other countries closely connected to Iran's energy system is Iraq, which imports gas via a pipeline.

U.S. Arab allies Saudi Arabia and the United Arab Emirates as well as Israel have long sought for Washington to work to curtail non-Arab and predominantly Shiite Muslim Iran's influence in the Middle East, including in war-torn Syria.

Russian Federation has been planning to import oil from Tehran but no major projects have materialized.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.