Published: Mon, October 08, 2018
Economy | By

USA reconsiders 'zero tolerance' policy on Iran oil imports

USA reconsiders 'zero tolerance' policy on Iran oil imports

CME Group Chairman and CEO Terry Duffy tells FOX Business' Neil Cavuto that USA businesses are adapting to current oil prices.

But Iran, OPEC's third-largest producer, has repeatedly said that its oil exports can not be reduced to zero because of high demand levels in the market and has blamed Trump for an oil price rally caused by imposing sanctions on Tehran.

Refiners have already announced purchases of oil from Iran for November at levels nearly similar to those in October, despite the start of the sanctions on the 4 November.

Secretary of State Mike Pompeo said in India last month that the administration would consider waivers and that some buyers of Iranian oil would take a "little bit of time" to unwind their trade with Iran.

However, a US government official said on Friday that the country could consider exemptions for nations that have already shown efforts to reduce their imports of Iranian oil.

"India is continuing with its relationship with both its key energy partners Iran and the United States", a second source said.

Brent crude, the global benchmark, was down 1.32% to $83.05 a barrel on London's Intercontinental Exchange early on Monday.


That is the longest streak of weekly cuts since October past year.

Iran's Oil Minister this week brushed off "nonsense" claims by Saudi Crown Prince Mohammed bin Salman that Saudi Arabia can replace Iranian oil.

Iran has warned that if it can not sell its oil due to USA pressure, then no other regional country will be allowed to do so either, threatening to block the Strait of Hormuz.

India is the world's third-largest oil importer, and Iran's second-biggest oil customer after China.

Concern that the U.S.

Saudi Arabia said last week it plans to raise production in November from October output of 10.7 million barrels per day (bpd), indicating Riyadh will be boosting its supply to the highest ever level. China is reportedly reducing its oil imports from Iran, though it's not likely to fully comply with the us demands.

Zanganeh accused Tehran's regional rival Saudi Arabia of bowing to USA pressure, saying such remarks had no "real impact on the market" but were part of a psychological war launched against Iran.

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