US softens stance on allies near Iran who rely on its oil

United States National Security Adviser John Bolton said on Wednesday that the Trump administration wants sanctions on Iran’s crude exports to strain Tehran, but does not want to harm countries dependent on the oil.

The US is preparing to impose the new sanctions on Iran’s oil industry after Washington withdrew from the 2015 nuclear deal between Tehran and other global powers in May. However, it is also considering offering waivers to some allies that rely on Iranian supplies.

“We want to achieve maximum pressure but we don’t want to harm friends and allies either,” Mr Bolton said.

The security adviser said the administration understood that some countries, particularly those in proximity to Iran, and others, “may not be able to go all the way, all the way to zero immediately”.

It was a more conciliatory tone from Mr Bolton, who is a proponent of getting tough on Iran and winding down its crude exports to zero.

He said the effects of international pressure could already be seen, with the collapse of Iran’s currency, the rial. “I think it’s important that we do not relax in the effort,” he said.

In a presidential memorandum addressed to the secretaries of State, Treasury and Energy, US President Donald Trump said he determined there was sufficient supply of petroleum and petroleum products elsewhere to allow for a reduction in purchases from the Islamic republic.

Under the law, the US president must periodically issue a determination on whether there is sufficient supply in the market from non-Iranian sources for countries to significantly cut their Iranian purchases.

The administration’s renewed sanctions come into effect on November 5.

Under US law, Washington can sanction the financial institutions of countries that fail to significantly reduce their purchases of Iranian oil and petroleum products.

The law, which came into effect during the Obama administration, aims to put pressure on Iran to curtail its nuclear programme, by forcing major oil customers to reduce their purchases.

Three of Iran’s five largest buyers of crude – China, India and Turkey – have resisted calls by Washington to end oil purchases outright.

This week South Korea asked Secretary of State Mike Pompeo for “maximum flexibility” on its request for a waiver to prevent companies there from being hit by the sanctions. Other countries, including Iraq and Afghanistan, depend on some Iranian imports.

The US administration said it will consider waivers on a case-by-case basis.