Iraq News - Local News - Baghdadpost

US may allow sanctions waivers for countries reducing Iranian oil

OPEC warns of threats to oil supply from Iran

The United States is considering the idea of waving sanctions for some countries importing oil from Iran, according to a US official on Friday.

The official said that administration of US President Donald Trump is considering significant reduction exemptions (SREs) for some countries that are reducing their oil imports from Iran, adding that it would be on a “case-by-case basis”.

This comes after India, second biggest importer of Iranian oil, is set to purchase 9 million barrels of oil from Iran in November, despite the threat of sanctions.

In May, Trump removed the US from the Iran nuclear deal signed under his predecessor, Barak Obama, and a new set of sanctions is set to be introduced on November 4. Trump seeks to use the sanctions to force Iran to end its nuclear ambitions, support of terrorism and spreading of chaos in the region.

With oil sanctions introduced by the Trump administration in August, Iran's oil exports have decreased by roughly 35 percent since April, and with a new set of sanctions set to be introduced in November, the decrease is expected to become even more dramatic.

The drop in oil exports is seriously affecting Iran's economy, as 80 percent of the country's tax revenue comes from oil, according to the IMF (International Monetary Fund).