New U.S. Sanctions Against Iran Go Into Effect

New U.S. Sanctions Against Iran Go Into Effect

New U.S. Sanctions Against Iran Go Into Effect

The measures that came into effect on Monday restore all the sanctions that had been lifted under the accord that gave Iran billions of dollars in sanctions relief in exchange for curbs on its nuclear program. The Administration has granted waivers to eight countries that have reduced their oil purchases from Iran but not stopped them entirely. They include some of Iran's top oil customers - China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey.

Pompeo said Washington granted exceptions to eight importers allowing them to temporarily keep buying Iranian oil.

Many of these companies initially were targeted by sanctions under President Barack Obama, but the restrictions were subsequently lifted when the USA struck a deal with Iran in 2015 over its nuclear ambitions.

Iran's exports peaked at 2.8 million barrels per day (bpd) in April, including 300,000 bpd of condensate, a lighter form of oil that when underground tends to exist as gas.

"Petrochemicals are key to our economy, and we stressed that if we're hit by the Iran sanctions, it would pose grave challenges to our whole economy", the official said, requesting anonymity due to the sensitivity of the issue. That is because virtually every country in the world was behind the previous sanctions, while all but a handful of nations oppose their reimposition.

He said the United States policy is to levy "maximum economic pressure" on the country. The U.N.'s atomic energy agency, which was tasked with monitoring the implementation of the agreement, has certified in multiple reports that Iran is in compliance.

US West Texas Intermediate (WTI) crude futures were at $62.93 a barrel at 0021 GMT, down 17 cents, or 0.3 per cent, from their last settlement.

The US says the sanctions, which US Secretary of Pompeo billed as the "toughest sanctions ever", are aimed at persuading Iran to "alter" its behavior, including its support for regional terrorist groups like the Hezbollah and its development of long-range ballistic missiles.

The second wave of renewed US sanctions on OPEC's third largest exporter officially started on Monday targeting Iran's energy, shipbuilding, shipping, and financial sectors.

Tehran vowed to defy the economic war while Iranian clerical rulers have dismissed concerns about the impact on the economy.

"Due to golden opportunities for Iran and its allies in the world, including China, Russia and the European Union, we all want a way to defeat the USA sanctions, because foreign companies can not work with bullies". The legislation also implies that European courts could nullify U.S. decisions regarding sanctions.

India's Oil Minister Dharmendra Pradhan confirmed on Saturday that the country, Iran's top oil client after China, had won a waiver from the USA sanctions after a "forceful campaign" by Prime Minister Narendra Modi.

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