Rouhani Hints at Threat to Neighbors' Exports If Oil Sales Halted

Rouhani Hints at Threat to Neighbors' Exports If Oil Sales Halted

Rouhani Hints at Threat to Neighbors' Exports If Oil Sales Halted

The exchange prompted the USA military to issue reassurances that the Gulf trade routes would be defended from any attack or Iranian threat. They have expressed strong disappointment at the USA withdrawal.

According to the source, Iran remains an "important near neighbour" for India, and a major oil supplier, and the government hoped to have further discussions with the understand the options it has on dealing with Tehran, given the sanctions proposed to kick in by November 4, 2017.

"The Americans say they want to reduce Iranian oil exports to zero".

Rouhani was in Vienna, where his country's nuclear agreement with world powers was drawn up three years ago, to promote the deal's survival after the withdrawal of the United States.

The sanctions would include a universal ban on Iran over buying or acquiring U.S. dollars as well as restrictions over purchases of crude oil from the country and investing in its oil sector projects.

Since pulling out of the deal, Washington has told countries that they must halt all imports of Iranian oil from November 4, or face USA financial measures.

But Trump had long railed against the JCPOA as a diplomatic and national security failure, because it focused on Iran's nuclear ambitions without addressing other activities, like Tehran's backing of groups deemed terrorist organizations by the U.S.

Hook said US officials are traveling around the world meeting with American allies to try to persuade them to cooperate with the sanctions.

Washington insists the world has enough spare oil capacity to replace Iranian crude, and Trump has said that he has persuaded Saudi Arabia to balance the market by boosting its own production.

The European Union, once Iran's biggest oil importer, has vowed to keep the 2015 deal alive without the United States by trying to keep Iran's oil and investment flowing.

The administration's tough new stance on Iranian exports, which goes far beyond what the Obama administration demanded and what most market experts were expecting, suggests that Russian Federation and Saudi Arabia have agreed to make up whatever Iranian production is taken out of the market, Vakhshouri said.

"For now, that's the plan", an European Union source said.

The sources said the United States was prepared to work with countries that are reducing their oil imports on a case-to-case basis.

But actually replacing more than 2 million barrels a day of Iranian crude exports won't be easy. Saudi Arabia and Russian Federation are expected to make up the bulk of the extra oil production, since few other big oil producers have room to ramp up output significantly, if at all.

But Russia, which has been pumping around 11 million barrels a day, has only has a limited ability to increase supplies in the near term.

"But this must be balanced and if signatories other than the USA can guarantee Iran's interests, Iran will stay in the deal without the US", he added.

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