The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States reimposes sanctions against Tehran, after Trump withdrew from the 2015 nuclear deal agreed between Iran and six major powers, against the advice of allies in Europe and elsewhere.
Under the JCPOA, Iran will put limits on its nuclear program in exchange for the removal of nuclear-related sanctions imposed on Tehran.
His comments appeared to be trying to ease local concerns fuelled by Trump's decision to withdraw from the nuclear deal with Iran. Other nations who signed the deal, including France and China, are still committed to the 2015 deal. It was adopted by United Nations Security Council Resolution 2231. "We are also working with oil market participants, including producers and consumers, to ensure market stability".
The spike in oil prices in late June seemed to cause some hesitation on the application of Iran sanctions by the USA; the selloff in oil prices, especially if it holds, could have the opposite effect.
But bringing India on board on the sanctions is important for the US.
"I don't think really high oil prices are in anyone's favor, largely because oil is suddenly facing competition from alternatives", said Maher.
The sudden plunge in oil prices could grant the Trump administration more leeway as it tries to shut in Iranian supply. In June, Saudi Arabia ramped up its production by nearly 0.5 million barrels to 10.49 million barrels per day, from its average production of 10.03 million barrels per day in May.
The government is yet to take a decision on cutting import of oil from Iran in compliance with the USA sanctions.
The oil market is closely observing developments.
The EU asked Washington to grant exemptions to European companies, however the USA government has rejected the appeal, saying exemptions would be made only if they benefited US national security.
Japanese refiners have said they will look at alternative supplies from other Middle Eastern oil producers, including Saudi Arabia and Kuwait, as well as from West Africa, to make up for Iranian oil grades when necessary. Foreign Secretary Shri Vijay Gokhale led the Indian delegation and Deputy Foreign Minister for Political Affairs Seyyed Abbas Araqchi led the Iranian side.
Relations between Saudi Arabia and Iran have been tense with Saudi Arabia blaming Iran for financing Houthi rebels in Yemen that have attacked Saudi assets.
Multinational companies returned to Iran after the signing of the landmark JCPOA agreement.
"Given the pre-eminence of United States in global trade and banking, defying the USA treasury sanctions can not be a feasible idea".
On May 8, U.S. President Donald Trump withdrew Washington from the worldwide nuclear accord on Iran as he pledged to reinstate U.S. sanctions on Tehran. Iran supplied 18.4 million tonnes of crude oil between April 2017 and January 2018 (first 10 months of fiscal 2017-18).
It added that the USA is "not in a position to make exceptions to this policy except in very specific circumstances". "That's something that Treasury and State will be doing", he said. Export linkages, between Europe and the United States, are much more than that between India and the US.
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