U.S. spares its oil-hungry allies

Permits China, partners to import petroleum products from Iran

As it reinstated sanctions Monday on Iran, the Trump administration was forced to carve out exemptions for important allies and back off on measures that could have been even more punishing for Tehran.

The U.S. granted waivers to allow China and seven close U.S. partners and allies to continue importing Iranian crude and other petroleum products without penalty, bowing to concerns that a complete end to Iran’s exports would cause a major spike in world oil prices and cause other economic disruptions.

The newly reinstated sanctions target Iran’s energy, financial and shipping sectors and are aimed at forcing Iran to end ballistic missile program and end its support for armed movements throughout the Middle East.

The measures restore all the U.S. sanctions that had been lifted under the 2015 accord that gave Iran billions of dollars in sanctions relief in exchange for curbs on its nuclear program, a deal that Obama administration critics had argued was too soft on the Islamic Republic.

The sanctions freeze any assets that those targeted have in U.S. jurisdictions and bar Americans from doing business with them. They will also affect nonIranian companies that deal with sanctioned Iranian firms and officials.

Yet, while the administration seeks to cut off Iran’s oil revenue, it is allowing Greece, India, Italy, Japan, South Korea, Taiwan and Turkey to continue purchasing Iranian oil as long as they work to reduce imports to zero.

“When I look at the list, it’s obviously very large economies that still in many ways depend on Iran oil imports and at this time don’t have any strong alternatives,” said Brian Katulis, a senior fellow at the Center for American Progress, a liberal think-tank.