US to give 8 countries Iran oil waivers
washington — Secretary of State Michael Pompeo said eight governments are going to receive temporary waivers from US sanctions on the import of Iranian crude that snap back on Monday following US President Donald Trump’s decision to quit the Iran nuclear agreement reached in 2015.
Waivers are being granted to countries that have shown they’ve made “important moves” towards reducing Iranian oil imports to zero, Pompeo told reporters on a conference call on Friday.
Of the eight countries receiving the waivers, six will import at “greatly reduced levels,” he said. The other two are at or near zero but receiving a waiver gives them flexibility and time to end their dependence on Iranian oil imports. Treasury Secretary Steven Mnuchin said the US is “intent on ensuring that global funds stop flowing to the coffers of the Iranian regime.”
Ahead of Friday’s call, a senior administration official said the eight countries included Japan, India and South Korea. China — the leading importer of Iranian oil — is still in discussions with the US on terms, but is among the eight, according to two people familiar with the discussions who also asked not to be identified.
Mnuchin also signalled that Swift, the global financial messaging system, could be subject to sanctions if it doesn’t comply with US sanctions by handling transactions with Iranian institutions in violation of restrictions.
Global benchmark Brent crude has fallen about 15 per cent from over $85 a barrel last month on increasing speculation that at least some nations will get waivers, as well as signs that other Opec members will pump more to offset any supply gap.
Previously, Pompeo has said “it is our expectation that the purchases of Iranian crude oil will go to zero from every country or sanctions will be imposed,” but also acknowledged that waivers were being negotiated with nations that say crude from the Middle East producer are critical to their energy industry.
The administration’s decision to issue waivers to eight countries also marked a significant reduction from the Obama administra- tion, which issued such exemptions to 20 countries over three years. During the previous round of sanctions, nations were expected to cut imports by about 20 per cent during each 180-day review period to get another exemption.
“We’re quite confident moving forward that the actions that are being taken are going to help us exert maximum pressure against the Iranian regime,” deputy State Department spokesman Robert Palladino said at a briefing on Thursday.