US says will not renew waivers for Iranian oil

The Trump administration said it won’t renew waivers that let countries buy Iranian oil without facing United States sanctions, a move that roiled energy markets and risks upsetting major importers such as China and India.

“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” said White House press secretary Sarah Sanders in a statement yesterday.

“The US, Saudi Arabia and the United Arab Emirates, three of the world’s great energy producers, along with our friends and allies, are committed to ensuring that global oil markets remain adequately supplied,” according to the statement.

Brent for June settlement climbed 2.6 per cent to US$73.87 (RM305.60) on the London-based ICE Futures Europe exchange as of 9.52am in New York. The global benchmark price rose as high as US$74.31 earlier in the session, its highest intraday level in almost six months.

The current set of waivers — issued to China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey — expire May 2.

President Donald Trump said in a tweet “Saudi Arabia and others in Opec (Organisation of the Petroleum Exporting Countries) will more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil”.

Saudi Energy Minister Khalid Al-Falih said yesterday the kingdom would coordinate with other oil producers to ensure adequate supplies were available to consumers.

Secretary of State Michael Pompeo said the US, Saudi Arabia and the UAE were “working directly with Iran’s former customers”.

He said “we will no longer grant any exemptions — we’re going to zero” and any nation continuing to buy Iranian oil would face US sanctions.