Iran oil buyers face Nov 4 deadline for US curbs to kick in

WASHINGTON: US sanctions related to Iran’s oil exports will kick in on November 4 at the end of a “wind down period”, after which large buyers such as India might come under American pressure to begin weaning themselves off Iranian oil.

On Tuesday, US President Donald Trump, while announcing the decision to leave the Iran nuclear deal, said he will order “reinstating US nuclear sanctions on the Iranian regime. We will be instituting the highest level of economic sanction”.

India is the second largest buyer of Iran’s oil. When the sanctions — secondary sanctions applicable to foreign companies and entities — are fully in place, the US will expect India to go off Iranian oil at the threat of punitive actions that remain undefined, but could include being shut out of the US banking system.

“We have experienced this before, but though we are wiser from the last experience we are really on uncertain ground here,” an Indian official said on condition of anonymity, referring to United Nations sanctions reinforced by then US president Barack Obama and EU curbs that were lifted after the 2015 deal.

Most observers had expected Trump to order to reinstate a sanction on Iran’s central bank, which was under a waiver related to the nuclear deal.

“Not the full menu,” said a Western diplomat, admitting to have been taken aback.