US grants Iran oil sanctions waiver to India, 7 other countries: report
02 November 2018
The United States has agreed to let eight countries, including close allies South Korea and Japan, as well as India, out of looming sanctions on Iran that bars countries from buying Iranian oil, a Bloomberg report said.
The US will re-impose sanctions on Iran from 4 November, following President Donald Trump’s decision to withdraw from the Iran nuclear deal entered into by western powers earlier this year.
India, the second-biggest importer of Iranian oil and top importer China, along with Japan, South Korea, Turkey, and Taiwan had all won exemptions during the previously imposed sanctions on Iran, before the Iran deal was agreed to in 2015.
Almost all major Asian consumers of Iranian oil have been seeking sanctions waivers to allow them to continue buying some of its oil, Bloomberg said, adding that a list of all countries getting waivers was expected to be released officially on Monday.
Reports quoting Chinese official said discussions with the US government were ongoing and that it was expected that Trump will agree to China importing some volumes, similar to the treatment that India and South Korea.
Oil prices, which rose when the latest round of sanctions was announced, over concerns that global oil supply would be depleted, is expected to fall or at least end an upward march with Iran returning to the market.
Analysts expected oil to stay above $75 per barrel with the re-imposition of sanctions, but the waivers and slowing demand for oil due to trade war fears could curb further gains in oil prices.
Brent crude, the global benchmark for oil, was trading at $74.51 per barrel on Thursday.
Crude oil prices fell, with Brent futures down by 10 cents at 0752 GMT to $72.79 per barrel, as the number of waivers granted surprised many traders.
Analysts said, however, that Iranian oil sanction waivers would likely only be temporary.