Monday, 23rd December 2024

US agrees to grants Iran sanctions waiver to eight countries

The close U.S. allies South Korea and Japan had received waivers along with India

Friday, 2nd November 2018

The U.S. government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, keep buying Iranian oil after it reimposes sanctions on Tehran from next week, Bloomberg reported on Friday, citing a U.S. official.

Iran's biggest oil customers - all in Asia - have been seeking sanctions waivers to allow them to continue buying some of its oil.

The close U.S. allies South Korea and Japan had received waivers along with India, which relies heavily on supplies from Iran. A list of all countries getting waivers was expected to be released officially on Monday.

A Chinese official told Reuters that discussions with the U.S. government were ongoing and that a result was expected over the next couple of days.

"We think Trump will agree to China importing some volumes, similar to the treatment that India and South Korea receive," Clayton Allen of Height Securities said in a note on Friday.

Another country that has been seeking a sanctions waiver is Turkey, which takes significant volumes via pipeline from neighbouring Iran.

Turkey's Energy Ministry said on Friday it had heard rumours of waivers but added it had not received written notification of any exemption on buying Iran oil after the United States reimposes sanctions on Tehran on Nov. 5.

Although some waivers had been expected, crude oil prices fell, with Brent futures down by 10 cents at 0752 GMT to $72.79 per barrel, as the number of waivers granted surprised many traders.

Goldman Sachs said it expects Iran's crude oil exports to fall to 1.15 million barrels per day (bpd) by the end of the year, down from around 2.5 million bpd in mid-2018.

Related Articles