U.S. says it still aims to cut Iran oil revenue
The Trump administration is standing by its plan to reduce Iran’s oil revenue to zero in a bid to isolate the country and force its leaders to change their behavior, a senior State Department official said Monday.
At the same time, the official said, the United States would work “caseby-case” with countries that import Iranian crude, signaling that the Trump administration might not im- mediately sanction those that continue importing from Iran beyond a Nov. 4 deadline.
“Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue on crude oil sales,” Brian Hook, the State Department’s director of policy planning, said at a briefing. “We are prepared to work with countries that are reducing their imports on a case-by-case basis, but as with our other sanctions, we are not looking to grant waivers or licenses.”
Hook’s comments follow a turbulent week in the oil market that started last Tuesday when a State Department official called on buyers to stop importing Iranian crude by Nov. 4.
In a briefing with reporters, the official said Washington would not likely grant waivers from secondary sanctions against foreign companies that continue to do business with Iran.
After the remarks, U.S. crude jumped more than 8 percent and closed at more than $74 a barrel — a first since November 2014.
The spike was the latest fallout from the Trump administration’s decision to abandon the landmark Iran nuclear deal and reimpose sanctions on Iran.
Some key countries are reliant on Iranian oil imports. Last week, Turkey’s economy minister said his country does not plan to abide by the U.S. demand for countries to stop importing Iranian oil, calling the request “nonbinding” on Turkey — a stinging rebuke from a NATO ally.