USA may announce waiver for India from Iran sanctions on Sunday

USA may announce waiver for India from Iran sanctions on Sunday

USA may announce waiver for India from Iran sanctions on Sunday

While US President Donald Trump and senior figures in Congress have pushed for harsher anti-Iranian sanctions, the State and Treasury Departments reportedly caved to pressure from European allies and Iran.

Iran says the United States is seeking to wage an extensive "psychological war" against Tehran by imposing a fresh round of sanctions, stressing that the Islamic Republic has no concerns over such U.S. bids.

Washington reimposed a number of sanctions on Iran in May after pulling out of a multilateral 2015 deal meant to curb the Islamic Republic's nuclear program.

The spokesperson of the Ministry of External Affairs said India has been in talks with the well as with Iran to ensure uninterrupted energy supply.

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

The official told Bloomberg that waivers were aimed at preventing oil price hikes and would be granted in exchange for continued import cuts.

Pulling crude back down, however, was a report that several governments had received waivers that would still allow countries to import some Iranian crude once U.S. sanctions are reimposed from next week.

That's symbolically important to the Trump administration because President Barack Obama's administration took three years to remove 1.2 million barrels from the market - and that was while acting in concert with the European Union and other nations before the worldwide effort yielded the 2015 deal. But we are prepared to work with countries that are reducing their imports on a case-by-case basis. He has released a list of 12 demands that Iran must meet if it wants the sanctions lifted.

"I think it's important that we not relax in the effort" to keep putting pressure on Tehran, he said. "There is much more that it's going to need to do", he said.

On the other hand, it's unclear whether the United States would grant any waivers, with U.S. Administration officials giving mixed signals.

Pompeo and Mnuchin both said the sanctions will have exceptions for humanitarian purchases.

That's significantly lower than the peak of 2.7 million bpd in June this year, but still stubbornly high compared to some analyst estimates that the predicted sanctions could possibly choke off close to 2 million bpd of Iran's oil exports.

The Islamic Republic of Iran Broadcasting (IRIB) news agency on Wednesday quoted Rouhani as calling the move "a new injustice" which the government did not fear.

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. The United Arab Emirates imports large amounts of Iranian fuel oil to power ships and Egypt imports oil from Iran for the Sumed pipeline. Currently, Iran provides its tankers as well as insurance for oil cargoes to India. Iran could mix its oil with crude from neighboring Iraq, sell on the black market or try a barter system supported by the Europeans.

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