[ad_1]
NEW DELHI (Reuters) – Washington will consider exemptions for Iranian oil buyers such as India, but they will eventually have to stop imports by imposing sanctions on Tehran, US Secretary of State Mike Pompeo said Thursday.
US Secretary of State Mike Pompeo shakes hands with Indian Foreign Minister Sushma Swaraj before the start of their meeting in New Delhi, India on September 6, 2018. REUTERS / Adnan Abidi
Pompeo, who is in Delhi with US Secretary of Defense Jim Mattis for talks with their Indian counterparts, told reporters that some Iranian oil buyers would take some time to unwind their trade with Iran.
The United States is pushing all countries to halt oil imports from Iran following the withdrawal of President Donald Trump in May from an agreement reached in 2015 between Iran and six world powers.
Some sanctions came into effect on August 6 and the rest, particularly in the oil sector, will end on November 4. Mr. Trump warned that anyone trading with Iran would not trade with the United States.
"We will consider exemptions, if at all, but we expect Iranian oil purchases to reach zero in all countries or sanctions to be imposed. So we will work with the Indians, we are committed to doing it, "said Pompeo.
Despite Trump's efforts, Indian government officials, the world's third largest oil importer and Iran's biggest oil customer after China, said it would be difficult to stop Tehran's deliveries completely.
"Many countries are in a place where it takes a bit of time to relax and we will work with them, I am sure to find a logical result," said Pompeo, adding that the United States would be "happy". if Iranian oil is replaced by American products.
Nevertheless, oil imports from Iran in August fell by a third as state refiners waited for the government's permission to buy oil with oil tankers and Iranian hedges.
As a sign of New Delhi's willingness to continue buying Iranian oil, Reuters announced this week that India has allowed its refiners to use Tehran's tanker and insurance coverage.
To attract Indian buyers and protect oil revenues, Iran offers extended credit terms and almost free delivery.
"But our mission is to ensure that Iran does not engage in malicious behavior with wealth from countries around the world. So the purpose of the sanctions, "said Pompeo.
Written by Nidhi Verma; Editing of Sanjeev Miglani and Angus MacSwan
