The U.S. re-introduced sanctions against Iranian oil exports on Monday.
It also gave some of its closest allies exemptions that will allow Tehranâ€
s biggest customers, mostly in Asia, to still buy crude for now.
Washington restored measures lifted under a 2015 nuclear deal negotiated with Tehran by the administration of President Barack Obama.
It added as well 300 new designations including Iranâ€s oil, shipping, insurance and banking sectors, aiming to cripple Iranâ€s main export revenues from the petroleum industry
In spite of this, Iran will continue to sell some oil as the U.S. has granted sanctions waivers to some of its closest allies in Asia.
Washington said on Friday it will temporarily allow eight importers to keep buying Iranian oil.
It did not name who had received the exemptions or provide any further details.
South Korea said on Monday it has been granted a waiver to at least temporarily continue to import condensate from Iran and also still continue financial transactions with the country.
The super-light crude oil from the Middle Eastern country is a critical feedstock for South Koreaâ€s large petrochemical industry.
South Korea, a U.S. ally and one of Asiaâ€s biggest buyers of Iranian oil, asked Washington for “maximum flexibilityâ€� last week.
It requested for such after some of its construction firms cancelled energy-related contracts in the republic due to financing difficulties.
Under U.S. law, exceptions to the renewed Iran sanctions can be granted for up to 180 days.
Japan said on Monday it was in close communication with the U.S. on the measures.
Meanwhile, Chief Cabinet Secretary Yoshihide Suga declined to provide any details.
Japan has asked that sanctions should not have an adverse impact on the activities of Japanese companies, Suga said.
Other Asian buyers of Iranian oil, including its two biggest, China and India, are also seeking waivers.
Chinese foreign ministry spokeswoman Hua Chunying said on Monday that China expressed regret at the U.S. decision to re-impose sanctions on Iran .
It reiterated its objections to unilateral sanctions, but she would not directly say if China had or had not been granted an exemption.
“China and Iran carrying out normal cooperation under the framework of international law is lawful and reasonable, and should be respected and protected,� Hua told a media briefing in Beijing.
Turkish Trade Minister Ruhsar Pekcan said on Saturday that Turkey has received indications that it will be among the countries to be granted a waiver from U.S. sanctions against Iran.
However, it is still awaiting clarification on Monday.
Some European countries may also receive exemptions.
Iranâ€s biggest oil buyers over the past years have been China, India, South Korea, Turkey, Italy, the United Arab Emirates and Japan.
Taiwan also occasionally buys cargoes of Iranian crude, but is not a major buyer.
Iran itself said it would simply ignore the sanctions.
With major buyers receiving exemptions, markets did not react strongly to the start of the sanctions,
“Oil fell as U.S. sanctions on Iran proved to be less severe than previously anticipated,� said Hussein Sayed, chief market strategist at futures brokerage FXTM.
“Exempting eight countries from the U.S. sanctions means Iranian Oil will continue to flow and thereâ€s no longer risk of a supply shortage,â€� he said.
Oil markets have been preparing for the sanctions for months.
The post U.S. Gives Purchase Exemptions For Iran Oil As Sanctions Begin appeared first on Independent Newspapers Nigeria.
U.S. Gives Purchase Exemptions For Iran Oil As Sanctions Begin
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