US to End Sanctions Exemptions for Major Importers of Iran’s Oil
US President
Donald Trump has decided to end exemptions from sanctions for countries still
buying oil from Iran.
The White
House said waivers for China, India, Japan, South Korea and Turkey would expire
in May, after which they could face US sanctions themselves.
This
decision is intended to bring Iran's oil exports to zero, denying the
government its main source of revenue.
Iran
insisted the sanctions were illegal and that it had attached "no value or
credibility" to the waivers.
Mr Trump
reinstated the sanctions last year after abandoning a landmark 2015 nuclear
deal between Iran and six world powers.
Under the
accord, Iran agreed to limit its sensitive nuclear activities and allow in
international inspectors in return for sanctions relief.
The Trump
administration hopes to compel Iran to negotiate a "new deal" that
would cover not only its nuclear activities, but also its ballistic missile
programme and what officials call its "malign behaviour" across the
Middle East.
The
sanctions have led to a sharp downturn in Iran's economy, pushing the value of
its currency to record lows, quadrupling its annual inflation rate, driving
away foreign investors, and triggering protests.
In November,
the US reimposed sanctions on Iran's energy, ship building, shipping, and
banking sectors, which officials called "the core areas" of its
economy.
However,
six-month waivers from economic penalties were granted to the eight main buyers
of Iranian crude - China, India, Japan, South Korea, Taiwan, Turkey, Italy and
Greece - to give them time to find alternative sources and avoid causing a
shock to global oil markets.
Three of the
eight buyers - Greece, Italy and Taiwan - have stopped importing Iranian oil.
But the others had reportedly asked for their waivers to be extended.
US Secretary
of State Mike Pompeo said Mr Trump's decision not to renew the waivers showed
his administration was "dramatically accelerating our pressure campaign in
a calibrated way that meets our national security objectives while maintaining
well supplied global oil markets".
"We
stand by our allies and partners as they transition away from Iranian crude to
other alternatives," he added.
Saudi Arabia
and others in OPEC will more than make up the Oil Flow difference in our now
Full Sanctions on Iranian Oil. Iran is being given VERY BAD advice by @JohnKerry and people who helped him
lead the U.S. into the very bad Iran Nuclear Deal. Big violation of Logan Act?
"We
have had extensive and productive discussions with Saudi Arabia, the United
Arab Emirates, and other major producers to ease this transition and ensure
sufficient supply. This, in addition to increasing US production, underscores
our confidence that energy markets will remain well supplied."
Saudi Energy
Minister Khalid al-Falih said his country would co-ordinate with fellow oil
producers to ensure "the global oil market does not go out of
balance".
Iranian
exports are currently estimated to be below 1 million barrels per day (bpd),
compared to more than 2.5 million bpd before Mr Trump abandoned the nuclear
deal last May.
The price of
global benchmark Brent crude rose by 3.33% to $74.37 a barrel in trading
on Monday - the highest since 1 November.
US oil -
known as West Texas Intermediate - was meanwhile up 2.90% at $65.93.
In recent
months, the price of oil has risen due to an agreement between the Organization
of the Petroleum Exporting Countries (Opec) cartel and its allies, including
Russia, to cut their output by 1.2 million bpd.
A spokesman
for Iran's foreign ministry dismissed Mr Trump's decision, saying the country
"did not and does not attach any value or credibility to the
waivers".
But Abbas
Mousavi added that because of the sanctions' negative effects, Iran was in
"constant contact" with its international partners and would act
accordingly.
Turkish
Foreign Minister Mevlut Cavusoglu tweeted that the US move would "not
serve regional peace and stability, yet will harm Iranian people".
"Turkey
rejects unilateral sanctions and impositions on how to conduct relations with
neighbours," he added.
China said
earlier that it opposed unilateral US sanctions.
"China-Iran
co-operation is open, transparent and in accordance with law. It should be
respected," foreign ministry spokesman Geng Shuang told reporters.
Japan's
chief cabinet secretary, Yoshihide Suga, was quoted by the Financial Times as
saying there should be no "negative effect on the operations of
Japanese companies". Its refineries reportedly halted Iranian imports in
March.
India's
government was studying the implications of the US announcement, the PTI news
agency cited sources as saying. The country had reportedly hoped to be allowed
to continue to reduce its Iranian oil imports gradually.
South Korea
stopped buying Iranian oil for four months in response, but resumed in
January. In March, it imported 284,600 bpd.
FROM .bbc.com/news/world-middle-east
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