The United States has decided to allow Iran to import oil from seven other countries along with India. Japan and South Korea will also be included in the discounted countries. A senior officer of the Trump Administration gave information to Bloomberg on the condition of keeping his identity confidential. He said that US Foreign Minister Michael Popeo will announce this on Friday. A new renewing US ban on oil imports from Iran will be effective from November 5.
The US wants to negotiate a renewed deal with Iran on the nuclear deal, but Iran is not ready for it. To pressurize the talks to be brought to the table, the United States is pushing for moving Iran’s economy. Therefore, he has requested the world to not buy oil from Iran since November 4. However, it is softening the condition from some countries that they will gradually reduce the amount of Iranian oil procurement. Countries like India also argue that if Iran was once boycotted, then oil prices will start skyrocketing, which will have an adverse effect on oil importers’ economy.
The biggest importer of Iranian oil, China is still negotiating with the US in terms of the exemption. Two sources familiar with the matter disclosed this on the condition of keeping the identity confidential. In this way, apart from India, Japan, South Korea and China, there are four countries who are entitled to get discounts.
The challenge before the Trump administration is that it should prove to be effective on the ban imposed on Iran so that its effort to teach Iran a lesson will not go unnecessarily. This is the reason why he is forced to appear soft in some countries so that adequate supplies are available in the oil market and the price of oil will not be wildly increased.
When the oil market came to know that some countries have to get an exemption from the US, last month the price of global benchmark Brent crude fell 15 per cent to $ 85 a barrel. Along with this, the assurance of increasing the oil supply by other member countries of OPEC organization of oil producers also stabilized the prices of Brent Crude.
US officials did not say the number of oil imports from Iran would be allowed. However, he definitely said that the countries which would get the exemption of oil imports from Iran, it would be temporary. They will continue to expect America to slow down buying oil from Iran gradually.