Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. will sanction whoever purchases Iran's oil - official

Published 08/09/2019, 18:59
Updated 08/09/2019, 18:59
© Reuters. A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf

By Parisa Hafezi

ABU DHABI (Reuters) - The United States will continue to impose sanctions on whoever purchases Iran's oil or conducts business with Iran's Revolutionary Guards and no oil waivers will be re-issued, a U.S. official said on Sunday.

Iran's crude oil exports were slashed by more than 80% due to re-imposed sanctions by the United States after President Donald Trump exited last year Iran's 2015 nuclear deal with world powers.

"We will continue to put pressure on Iran and as President (Trump) said there will be no waivers of any kind for Iran's oil," Sigal Mandelker, U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, told reporters.

Mandelker added that Iranian oil sales have taken a "serious nose dive" because of U.S. pressure.

Since ditching the nuclear deal, calling it skewed to Iran's advantage, Trump has reimposed sanctions to strangle its vital oil trade and force Tehran to accept stricter limits on its nuclear activity, curb its ballistic missile programme and end its support for proxy forces around the Middle East.

In retaliation, Iran has been reducing its commitments under the deal since May, pressuring European countries to the pact to protect Tehran's interests and its economy.

France has proposed offering Iran about $15 billion in credit lines until year-end if Tehran comes fully back into compliance with its 2015 nuclear deal, a move that hinges on Washington not blocking it, Western and Iranian sources said.

In addition to saving the deal, Tehran wants to restart selling its oil.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Two Iranian officials and one diplomat told Reuters on Aug. 25 that Iran wants to export a minimum of 700,000 barrels per day of its oil and ideally up to 1.5 million bpd if the West wants to negotiate with Tehran to save the nuclear deal.

On Sunday, Iran said that its oil tanker Adrian Darya 1, which was detained by Britain off Gibraltar in July for allegedly breaking EU sanctions on Syria and was released in mid-August, had unloaded its oil after docking somewhere in the Mediterranean region.

Last month, the U.S. Treasury blacklisted the tanker, which went dark off Syria last week and had been photographed by satellite off the Syrian port of Tartus.

"This is not just about the tanker. It is a sharp warning to any company in the world," said Mandelker. "Companies and governments understand that between the choice of doing business with Iran or doing business with the U.S. it’s a no-brainer,"

On Sept 3, Iranian President Hassan Rouhani said Tehran will never hold bilateral talks with the United States but if it lifts all the sanctions it reimposed on Iran it can join multilateral talks between Iran and other parties to the nuclear agreement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.