US to exempt eight countries from new Iran oil sanctions: Pompeo

US to exempt eight countries from new Iran oil sanctions: Pompeo

US to exempt eight countries from new Iran oil sanctions: Pompeo

Asked about reports that the United States was going to grant India waiver from the Iran sanctions, Spokesperson in the Ministry of External Affairs Raveesh Kumar said the government has not heard anything from Washington.

Investors are concerned about the prospects for oil supply when new USA sanctions are implemented against Iran on Monday. He didn't identify the remaining four countries.

There have been indications that India may not totally stop import of crude oil from Iran.

Global benchmark Brent crude has fallen about 15 percent from over $85 a barrel last month on increasing speculation that at least some nations will get waivers, as well as signs that other OPEC members will pump more to offset any supply gap.

Crude oil futures were trading in the $63.60 range Friday at 10:50 a.m. ET. Although China and India's Iranian oil intake in recent months has fluctuated, and although some of their companies most exposed to the USA financial system have drastically reduced or outright stopped imports from Iran (like India's Reliance Industries), the countries saw their imports in the first three weeks of October increase or hold steady around the volumes from recent months. "India will cut import by about 35% from previous year (2017-18), which is a significant cut", a source said.

Iran's biggest oil customers - all in Asia - have been seeking sanctions waivers to allow them to continue buying some of its oil.

Hours before he spoke, Iranian President Hassan Rohani warned Iranians they could face more economic hardship in the months ahead as the USA imposes a new round of sanctions.

The Trump administration is to reinstate all United States sanctions on Iran that were removed as part of the 2015 nuclear deal. These sanctions are a pressure tactic to constrain Iran's nuclear programme.

Separately, Oil Minister Bijan Zanganeh said on Wednesday that 280,000 barrels of oil had been sold on the country's energy bourse and that an additional 720,000 barrels would be offered for sale again on the exchange, according to SHANA, the news website of the Iranian Oil Ministry.

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.

The administration has said it is considering waivers on a case-by-case basis. To gain the waiver, it likely agreed to a larger cut of imports from previous levels.

As a result, we continue to expect that Iran exports will sequentially decline with our export forecast at 1.15 mb/d into year-end. "This leading state sponsor of terrorism is going to see revenues cut off significantly that will deprive it of its ability to fund terrorism throughout the region".

The Iran sanctions have officially been cast.

The Indian side, while building its case for a waiver, assured the USA that this payment mechanism ensures Iran can't use oil money from India for any terror-related activity, a key American concern.

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