WASHINGTON (Reuters) - The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, a move to choke off Tehran’s oil revenues which sent crude prices to six-month highs on fears of a potential supply crunch.

The Trump administration on Monday said it will not renew exemptions granted last year to buyers of Iranian oil, a more stringent than expected decision that caught several key importers who have been pleading with Washington to continue buying Iranian oil sanctions-free.

The United States reimposed sanctions in November on exports of Iranian oil after U.S. President Donald Trump last spring unilaterally pulled out of a 2015 accord between Iran and six world powers to curb Tehran’s nuclear program. Eight economies, including China and India, were granted waivers for six months, and several had expected those exemptions to be renewed.

Tehran remained defiant, saying it was prepared for the end of waivers, while the Revolutionary Guards repeated a threat to close the Strait of Hormuz, a major oil shipment channel in the Gulf, Iranian media reported.

The White House said it was working with top oil exporters Saudi Arabia and the United Arab Emirates to ensure the market was “adequately supplied.” Traders, already fretting about tight supplies, raised skepticism about whether this more stringent approach, along with ongoing sanctions on Venezuela’s oil industry, could backfire in the form of a major spike in prices.

“It is a surprise that the requirement to cease importing Iranian oil should come at this next May deadline,” said Elizabeth Rosenberg, director of the energy, economics and security program at Washington-based Center for a New American Security. “Having only several weeks’ notice before the deadline means there are lots of cargoes booked for May delivery. This means that it will now be harder to get it out by the deadline.”

Iran’s oil exports have dropped to about 1 million barrels per day (bpd) from more than 2.5 million bpd prior to the re-imposition of sanctions. U.S. Secretary of State Mike Pompeo, in a briefing Monday, said “we’re going to zero across the board,” saying the United States had no plans for a grace period for compliance beyond May 1.

The White House intends to deprive Iran of its lifeline of $50 billion in annual oil revenues, Pompeo said, as it pressures Tehran to curtail its nuclear program, ballistic missile tests and support for conflicts in Syria and Yemen.

A senior administration official said President Donald Trump was confident Saudi Arabia and the United Arab Emirates will fulfill their pledges to compensate for the shortfall in the oil market. U.S. Assistant Secretary of State for Energy Resources Frank Fannon said Riyadh was taking “active steps” to ensure global oil markets were well supplied.

Saudi Arabian Energy Minister Khalid al-Falih, in a statement on Monday, did not commit to raising production, saying it was “monitoring the oil market developments” after the U.S. statement, and that it would coordinate with other oil producers to ensure a balanced market. OPEC is next scheduled to meet in June.

While Saudi Arabia is expected to boost output again, analysts fear the U.S. move - along with sanctions on Venezuela - will leave the world with inadequate spare capacity.

The international Brent crude oil benchmark rose to more than $74 a barrel on Monday, the highest since November, due to the uncertainty surrounding increased supply from Saudi Arabia and other OPEC nations, while U.S. prices hit a peak of $65.92 a barrel, the highest since October 2018.

“Despite high and fast-rising oil prices and high geopolitical disruption risk, (Trump) is betting the farm that Saudi Arabia and the UAE will contain upward price pressure by more than offsetting Iranian oil,” said Robert McNally, president of Rapidan Energy Group, an energy consultancy.

In addition to China and India, the economies of Japan, South Korea, Taiwan, Turkey, Italy and Greece had also been granted waivers.

FILE PHOTO: A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi/File Photo/File Photo

QUESTIONS ABOUT WORLD SUPPLY

Trump has been clear to his national security team in recent weeks he wants the waivers to end and national security adviser John Bolton has been working on that within the administration.

“One thing that has clearly been going on inside the administration is a debate about when they should get to zero,” said Rosenberg.

In recent months, Saudi Arabia and other OPEC members have cut supply dramatically. OPEC, along with ally Russia and others, agreed to reduce output by 1.2 million bpd, but they have exceeded those benchmarks, with Saudi Arabia alone reducing supply by 800,000 bpd.

While Italy, Greece and Taiwan already have halted purchases, doing so could prove much more challenging for China and India. Turkey, another buyer, already has slammed the U.S. decision. “We had indicated privately that zero was coming and now we’re here,” a senior administration official said on Monday, referencing Turkey’s concerns.

Geng Shuang, a Chinese Foreign Ministry spokesman, said at a daily news briefing in Beijing on Monday that it opposed unilateral U.S. sanctions against Iran and that China’s bilateral cooperation with Iran was in accordance with the law.

South Korea’s Yonhap news agency quoted the Foreign Ministry as saying the South Korean government had been negotiating with the United States at all levels to extend the waivers and that it would continue to make every effort to reflect Seoul’s position until the May deadline.

In India, refiners have started a search for alternative supplies but the government declined to comment officially.

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A spokesman for the Japanese embassy in Washington said Tokyo was not planning to comment on the decision but Japanese officials say the Iran issue was discussed at a meeting between the Japanese foreign minister and Pompeo last Friday.

It is also expected to come up during a visit to Washington this Friday by Japanese Prime Minister Shinzo Abe, which is expected to focus on North Korea and the challenge posed by China’s rise.

(GRAPHIC: Asia's Iranian crude oil imports link: here)</s>China lashes out at US over Iran oil sanctions move

BEIJING (AP) — Beijing on Tuesday again lashed out at a U.S. decision to impose sanctions on countries that buy Iranian oil, calling it a violation of China's interests that will intensify turmoil in the Middle East and international energy markets.

Foreign ministry spokesman Geng Shuang said the U.S. is operating outside its jurisdiction in unilaterally imposing the sanctions. He said normal interactions between Iran and other countries are "reasonable and lawful" and deserving of respect and protection.

"The relevant actions of the U.S. will also intensify the turmoil in the Middle East and international energy market," Geng said.

"We urge the U.S. to play a constructive role in a responsible manner, instead of the other way around. In addition, we have already made complaints with the U.S. on this matter," he said.

Geng said China will work to safeguard its companies' interests, reflecting its desire to secure foreign markets as it pursues its massive "Belt-and-Road" infrastructure initiative.

China is one of Iran's biggest oil markets and was a strong backer of the agreement to lift sanctions in return for Iran curbing its nuclear weapons program that was scrapped by President Donald Trump.

The Trump administration said Monday that it will no longer exempt any countries from U.S. sanctions if they continue to buy Iranian oil, stepping up pressure on Iran in a move that primarily affects the five remaining major importers.

Along with India and U.S. treaty allies Japan, South Korea and Turkey, China was one of the countries primarily affected by the announcement.

Oil prices soared to their highest level since October on Tuesday.

The sanctions could potentially remove up to 1.2 million barrels of oil per day from international markets, according to industry experts. However, that number will likely be lower, depending on how countries respond and just how much oil Iran continues to export.</s>Sputnik discussed what this means for Iran with Professor Foad Izadi from Tehran University.

Sputnik: US Secretary of State Mike Pompeo announced that US is ending sanction waivers for countries like Turkey and other global powers which currently allow them to purchase Iranian oil, how is it going to affect Iran as an oil producer?

Foad Izadi: You know Iran was producing about 2.5 million barrels of oil every day before the US got out of the nuclear agreement, and because of the US pressure, this production is about 1 million now about 1.5 million less than what we had last year, before the US got out of the nuclear agreement. Obviously US sanctions on Iran are hurting Iran's oil exports, what the US government announced today was that it was stopping the waivers that it was giving to some of Iran's oil buyers and they already have some of these countries objecting, the Chinese government, the Turkish government, that have been buying oil from Iran, have been opposing this US policy because it is illegal. The US is dictating to sovereign, independent countries what to do with their international trade.

READ MORE: Saudi Arabia Pledges to Stabilise Market as US Ends Iran Oil Waivers — Minister

The US Congress wants to pass laws that foreign non-US companies have to follow, and this is violating the sovereignty of these countries. Because of the nuclear agreement, the UN sanctions were lifted, so the sanctions that exist are US sanctions. The US is welcome to pressure American companies not to trade with Iran but the US has no right to pressure countries and companies that are not American to not work with Iran, because that's a violation of international law, and that's why some of the countries that are buying Iranian oil are objecting. I doubt what the US announced today (Monday) will actually work. The aim is to make Iran oil exports zero and I doubt that they're actually going to be able to do that.

'We Are Going to Zero': US Will No Longer Provide Sanctions Waivers for States Importing Iran Oil Sputnik: You mentioned that oil production in Iran had fallen from 2.5 million to 1 million; do you think this new US policy will also affect the production of Iranian oil and it will drop?

Foad Izadi: What we are hearing from the buyers is that they're not going to follow the US government in its failed policies towards Iran. They don't see any reason why they shouldn't be trading with Iran. Based on what we're hearing from these governments, the US is not going to be effective in achieving this goal.

Sputnik: The Trump administration, just less than two weeks ago, proclaimed the Islamic Revolutionary Guard Corps as a foreign terrorist organisation, now these oil sanctions, do you think this is just a new wave of the Trump administration's dealings with Iran?

Foad Izadi: Yes, they call it a "maximum pressure campaign", so they are using all available tools to pressure Iranian government, and they have not been successful so far. They wanted Iran to surrender to US demands, they wanted to overthrow the Iranian government, they have not been able to do that, they wanted to get major concessions from Iran if the Iranian government was not overthrown and they have not been able to get any concessions from the Iranian government. The US policies have failed so far, so they're just following the failed policies and creating more difficulties.

Sputnik: Do you expect other steps by the Trump administration, more sanctions, etc.?

Foad Izadi: They will continue this type of sanction activities as long as they're in power, because their aim is to overthrow the Iranian government or to get major concessions from it and they're not going to be able to do that, I think.

READ MORE: Iran's Parliament Designates US Military as Terrorists, Adopts Counter-Sanctions

Sputnik: How will these new sanctions and keeping pressure on Iran influence Iranian society inside the country? Is it a good time for conservatives in Iran who are saying we shouldn't have had a dialogue in the first place or is it maybe for those who are saying no we still need to keep up a dialogue with the United States?

Foad Izadi: No one in Iran has a problem with dialogue, the problem that people have is that this dialogue has not been resulting in anything positive, and it took many years to reach the nuclear agreement, and the US just got out without any proper reason. So the Rouhani administration is under pressure from public opinion and from other politicians to deliver some of the promises that they made after the nuclear agreement, and obviously they're not able to fulfil those promises because of the United States government. So they're under pressure but at the same time a lot of Iranians understand that the reason why the Rouhani administration are not able to deliver, because of the United States and because of Trump, not because of Rouhani. They're not blaming him as much as they're blaming Mr. Trump.

The views and opinions expressed by the speaker do not necessarily reflect those of Sputnik.</s>Russia on Tuesday called the U.S. tightening of oil sanctions on Iran an "aggressive and reckless" policy after Washington announced it was seeking to stop all exports of Iranian crude.

"Such a course of action adds nothing to the Americans' international standing," the Russian foreign ministry said in a statement.

"The rest of the world perfectly understands that Washington's policy is becoming more and more aggressive and reckless," it said.

The ministry said that "Washington is not even hiding its desire to make the world bend to its will," branding the heightened Iran sanctions "disturbing".

The United States on Monday announced that, in a bid to reduce Iran's oil exports to zero, it would from May 2 end U.S. waivers that countries such as India, China, South Korea and Turkey currently have on buying Iranian crude.

The move targets the Islamic Republic's main economic earner and adds to sanctions pressure that has built up under US President Donald Trump, who has pulled his country out of a 2015 international deal aimed at curbing Iran's nuclear program.

Russia, which is allied with Iran in Syria, praised Tehran's "restraint" over "the arrogant American provocations".

It called for all parties "with common sense" to do what they can to ensure the accord over Iran's nuclear activities survives.

Trump's decision to do away with the waivers has seen global oil prices rise, along with commercial tensions with China and India.</s>The Latest: Israel praises US decision on Iran oil sanctions

WASHINGTON (AP) — The Latest on U.S. sanctions on countries importing Iranian oil (all times local):

Israeli Prime Minister Benjamin Netanyahu (neh-ten-YAH'-hoo) is praising the Trump administration's decision to end sanction waivers for countries importing Iranian oil.

Netanyahu said Monday that the move "is of great importance for increasing pressure on the Iranian terrorist regime."

"We stand with the United States' determination against Iranian aggression and this is the right way to stop it," he said.

The decision means sanctions waivers for five nations, including China and India and U.S. treaty allies Japan, South Korea and Turkey, won't be renewed when they expire on May 2.

The move comes as the administration toughens its already strict penalties on Iran by trying to choke off all the revenue the country makes from oil sales.

The White House says the U.S. is ending exemptions from sanctions for countries that import Iranian oil. In a statement, the White House said it was taking "timely action to assure that global demand is met as all Iranian oil is removed from the market."

Secretary of State Mike Pompeo was to discuss the move at the State Department Monday morning. The decision means sanctions waivers for five nations, including China and India and U.S. treaty allies Japan, South Korea and Turkey, won't be renewed when they expire on May 2.

The move comes as the administration toughens its already strict penalties on Iran by trying to choke off all the revenue the country makes from oil sales.

The waivers had been in place since November, when the administration re-imposed sanctions on Iran after President Donald Trump withdrew the U.S. from the landmark 2015 nuclear deal with Iran.

They were granted in part to give those countries time to eliminate their purchases of Iranian oil but also to ease any impact on global energy markets with the abrupt removal of Iran's production.

Pompeo says now that production increases elsewhere will make up for the loss of Iranian oil on the market.

The Trump administration is poised to tell five nations, including allies Japan, South Korea and Turkey, that they will no longer be exempt from U.S. sanctions if they continue to import oil from Iran.

Officials say Secretary of State Mike Pompeo plans to announce on Monday that the administration will not renew sanctions waivers for the five countries when they expire on May 2. The others are China and India.

It was not immediately clear if any of the five would be given additional time to wind down their purchases or if they would be subject to U.S. sanctions on May 3 if they do not immediately halt imports of Iranian oil.</s>The Trump administration on Monday told five nations, including allies Japan, South Korea and Turkey, that they will no longer be exempt from U.S. sanctions if they continue to import oil from Iran.

President Donald Trump has decided not to reissue the waivers when they expire in early May, White House press secretary Sarah Sanders said.

"The decision is intended to bring Iran's oil exports to zero, denying its principal source of revenue," Sanders said in a statement.

Secretary of State Mike Pompeo claimed the sanctions have already cost Iran around $10 billion, as he told a press conference the US would not grant anymore exemptions.

"Any nation interacting with Iran should do its due diligence and err of the side of caution. The risks are simply not going to be worth the benefits," he said.

Pompeo said the U.S. had gained assurances from oil producers - namely Saudi Arabia and the UAE - to ensure a sufficient supply to minimise impact on pricing.

He added the length of the sanctions being at zero depends on the Iranian Ayatollah and "his cronies" meeting certain demands.

These demands include Iran ending its pursuit of nuclear weapon, stopping development of ballistic missiles, stopping sponsoring and committing terrorism and stopping arbitrary detention of US citizens.

The U.S. had granted eight oil sanctions waivers when it re-imposed sanctions on Iran after Trump pulled out of the landmark 2015 nuclear deal.

They were granted in part to give those countries more time to find alternate energy sources but also to prevent a shock to global oil markets from the sudden removal of Iranian crude.

Since November, three of the eight — Italy, Greece and Taiwan — have stopped importing oil from Iran. The other five, however, have not, and have lobbied for their waivers to be extended.

NATO ally Turkey has made perhaps the most public case for an extension, with senior officials telling their U.S. counterparts that Iranian oil is critical to meeting their country's energy needs. They have also made the case that as a neighbor of Iran, Turkey cannot be expected to completely close its economy to Iranian goods.

Read more: China opposes US sanctions strategy and says bilateral cooperation with Iran is legal</s>WASHINGTON (Reuters) - The United States is preparing to announce on Monday that all importers of Iranian oil will have to end their imports shortly or be subject to U.S. sanctions, the Washington Post reported on Sunday.

The U.S. reimposed sanctions in November on exports of Iranian oil after President Donald Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers. Washington is pressuring Iran to curtail its nuclear program and stop backing militant proxies across the Middle East.

Along with sanctions, Washington has also granted waivers to eight economies that had reduced their purchases of Iranian oil, allowing them to continue buying it without incurring sanctions for six more months. They were China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.

But on Monday, Secretary of State Mike Pompeo will announce “that, as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate,” the Post’s columnist Josh Rogin said, citing two State Department officials that he did not name.

Reuters was unable to independently verify the report.

On Wednesday, Frank Fannon, U.S. Assistant Secretary of State for Energy Resources, repeated the administration’s position that “Our goal is to get to zero Iranian exports as quickly as possible.”

Other countries have been watching to see whether the United States would continue the waivers. Last Tuesday, Turkish presidential spokesman Ibrahim Kalin said that Turkey expects the United States to extend a waiver granted to Ankara to continue oil purchases from Iran without violating U.S. sanctions.

Turkey did not support U.S. sanctions policy on Iran and did not think it would yield the desired result, Kalin told reporters in Washington.

Washington has a campaign of ‘maximum economic pressure’ on Iran and through sanctions, it eventually aims to halt Iranian oil exports and thereby choke Tehran’s main source of revenue.</s>The United States has made a bad mistake by politicizing oil and using it as a weapon, Iran's Oil Minister Bijan Zanganeh said in a parliamentary session on Tuesday, the Islamic Republic News Agency (IRNA) reported.

TEHRAN: The United States has made a bad mistake by politicising oil and using it as a weapon, Iran's Oil Minister Bijan Zanganeh said in a parliamentary session on Tuesday (Apr 23), the Islamic Republic News Agency (IRNA) reported.

"America has made a bad mistake by politicizing oil and using it as a weapon in the fragile state of the market," Zanganeh said, according to IRNA.

Oil prices on Tuesday hit their highest level since November after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

READ: Oil hits highest since November as US to tighten Iran sanctions



Zanganeh added that the United States will not be able to reduce Iran's oil exports to zero.

"With all our power, we will work toward breaking America's sanctions," Zanganeh said in parliament, according to the Iranian Students' News Agency (ISNA).

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers, most of them in Asia, to continue importing limited volumes.</s>China lashes out at US over Iran oil sanctions move

BEIJING (AP) — Beijing is again lashing out at a U.S. decision to impose sanctions on countries that buy Iranian oil, calling it a violation of China's interests that will intensify turmoil in the Middle East and international energy markets.

Foreign ministry spokesman Geng Shuang on Tuesday said the U.S. is operating outside its jurisdiction in unilaterally imposing the sanctions. He said normal interactions between Iran and other countries are "reasonable and lawful" and deserving of respect and protection.

Shuang said China will continue to work to safeguard its companies' interests, reflecting its desire to secure foreign markets as it pursues its massive "Belt-and-Road" infrastructure initiative.

China was a strong backer of the agreement to curb Iran's nuclear weapons program that was scrapped by President Donald Trump.</s>WASHINGTON The US announced yesterday it will no longer grant sanctions exemptions to Iran's oil customers, potentially punishing allies as it tries to squeeze Teheran's top export.

The White House said Saudi Arabia and the United Arab Emirates - US allies that back President Donald Trump's hawkish stance against regional rival Iran - would work to make up the difference in oil to ensure global markets are not rocked.

"This decision is intended to bring Iran's oil exports to zero, denying the regime its principal source of revenue," the White House said in a statement.

"The Trump administration and our allies are determined to sustain and expand the maximum economic pressure campaign against Iran to end the regime's destabilising activity threatening the United States, our partners and allies and security in the Middle East," it said.

Eight governments were initially given six-month reprieves from the unilateral US sanctions on Iran. They include India, which has warm ties with Washington but disagrees on the US insistence that Iran is a threat.

Other countries that will be affected include China and Turkey, opening up new friction in contentious relationships if the US goes ahead with sanctions.

The others - Greece, Italy, Japan, South Korea and Taiwan - have already heavily reduced their purchases from Iran.

Mr Trump last year withdrew the US from an accord under which Iran drastically scaled back its nuclear programme in return for sanctions relief.

The Trump administration, backed by Saudi Arabia and Israel, has unilaterally imposed sanctions and demanded other countries follow suit.

US officials said they are aiming at choking off Iranian revenue to reduce the regime's regional clout, notably its support for militants groups such as Lebanon's Hezbollah.
The United States demands that all countries cease purchasing oil from Iran by May 1 or face sanctions, in a move aimed at reducing Iran's income.