Published: Fri, November 02, 2018
Worldwide | By Lisa Hogan

US agrees to grant India waiver from Iran oil sanctions

US agrees to grant India waiver from Iran oil sanctions

Despite Mr. Trump fulfilling a campaign promise by re-imposing the sanctions, some Obama-era officials including former Secretary of State John Kerry have been caught working behind the scene to help the European Union continue their trade.

Goldman Sachs said it expects Iran's crude oil exports to fall to 1.15 million barrels per day (bpd) by the end of the year, down from around 2.5 million bpd in mid-2018.

The United States plans to impose sanctions targeting Iran's oil sector on November 4.

The Bloomberg report however states that the waivers are temporary and the USA "expects" countries that are getting waivers to keep cutting Iranian imports in the coming months.

Paladino said that the United States will continue to discuss America's Iran policy with its counterparts across the world.

How companies will pay for Iranian oil is still being negotiated between India and Iran, sources said, adding that it's likely that the two countries will stick to the existing mechanism under which 55% of payment is made in euro and 45% in rupee through UCO Bank.

This week, South Korea also asked U.S. Secretary of State Mike Pompeo for "maximum flexibility" on its request for a waiver to prevent companies there from being hit by the sanctions. "And that's important, because Iran remains - after a couple years plus of the JCPOA, they still remain the world's largest state sponsor of terror", he said.

"These are not the kinds of behaviours of a normal nation", Pompeo said.

Bolton insisted, however, that even if some exceptions were granted, Iran is already feeling pain from the US sanctions, particularly with the collapse of its currency, the rial, this year. "So while their governments say it's okay to do business there, they know", he said.

The restrictions come six months after President Donald Trump fulfilled a campaign promise and ended an Obama-era nuclear agreement with the Middle East state.

"And the history, since May, now nearly six months on, is that most European companies are choosing - not surprisingly - to do business with America".

The U.S. government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, keep buying Iranian oil after it reimposes sanctions on Tehran from next week, Bloomberg reported on Friday, citing a U.S. official.

The Schork Report Publisher Stephen Schork on the outlook for oil. In the USA, crude production posted a record high at 11.2mbpd with production rising at a faster pace than the fracking boom of 2014, while Saudi Arabia is pumping oil at 10.45mbpd and recently stating that they could boost oil supply by 1-2mbpd in the near term. Iran used the funds to buy goods from India. These channels would get blocked from November.

Through April, South Korea had imported an average of 300,000 bpd of Iranian oil, but in the months since Trump's decision, it tapered those purchases in anticipation of the sanctions.

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