Wednesday , October 20 2021

The United States retakes Iran's sanctions, grant oil exemptions to China, seven others


By Humeyra Pamuk and Jane Chung

WASHINGTON – SEOUL (Reuters) – The United States has suspended penalties in the reader to prevent Iran's oil and shipping industry, temporarily allowing major customers such as China and India continue to buy crude oil from the Islamic Republic.

After leaving Iran's nuclear agreement in 2015, the president of the United States. Donald Trump is trying to avoid the oil-dependent economy of Iran and force Tehran to eliminate not only his nuclear ambitions and his ballistic missile program, but his support for militant proxies in Syria, Yemen, Lebanon and others. parts of the Middle East.

Washington has pledged to completely stop the purchase of Iranian crude eventually, but for now it said eight countries – China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey – can continue to import imports for now without penalty. Crude oil exports represent one-third of Iran's government revenues.

"More than 20 importing countries have already zeroed imports of crude oil, bringing more than one million barrels of oil per day out of the market," said journalist Mike Pompeo in a statement. "The regime has since lost more than $ 2.5 trillion in oil revenues since May."

"We decided to issue temporary parcels to a handful of countries that respond to specific circumstances and ensure a well-supplied oil market," said Pompeo. "Each of these countries has already shown a significant reduction in the purchase of crude oil in Iran in the last six months."

Exemptions are designed to last up to 180 days.

US officials said that countries that granted temporary sanctions exemptions will deposit Iran's revenue on deposit accounts and Tehran may use funds for humanitarian purposes.

Iran's exports reached a peak of 2.8 million barrels per day in April, including 300,000 barrels per day of condensate, a lighter form of oil than when the underground tends to exist as a gas. Global exports have fallen to 1.8 billion bpd since then, according to energy consultant Wood Mackenzie, which expects volumes to drop more than 1 million bpd.

Oil prices rose more than $ 85 a barrel in October due to fears of a sharp decline in Iranian exports. Since then, prices have fallen on the expectations that some buyers would receive exemptions and increased the supply of the largest producers in the world.

On Monday, the gross international reference earned more than $ 1 for a session of over $ 73.92 per barrel. US gross futures rose 1 percent to $ 63.85 a barrel. [O/R]

The sanctions cover 50 Iranian banks and subsidiaries, more than 200 people and ships in its maritime sector and direct the national airline of Tehran, Iran Air, and more than 65 of its aircraft, said a statement from the United States Treasury.

(Click here to see a GRAPHIC on Iranian oil: 40 years of revolution, war, sanctions and prohibitions).

Iran's largest oil buyers in recent years have been China, India, South Korea, Turkey, Italy, the UAE and Japan.

Funding US sanctions as "economic war", Tehran promised to challenge them while Iranian clerical officials dismissed concerns about the impact on the economy.

"It will be difficult for Iran to maximize exports when virtually all oil trades remain in the United States, putting international oil companies, many domestic oil companies, traders and banks out of bounds," said Homer Mackenzie analyst Homayoun Falakshahi.

(Reporting by Jane Chung in SEOUL, Kaori Kaneko and Osamu Tsukimori in TOKYO and Ben Blanchard in BEIJING; Additional reports by Nidhi Verma in NEW DELHI and Lesley Wroughton in WASHINGTON, written by Humeyra Pamuk and Henning Gloystein and Dmitry Zhdannikov; Editing by David Gaffen and Bill Trott)

(This story has not been edited by Business Standard staff and it is automatically generated from a syndicated source).

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