The Trump administration announced on Monday that it will no longer grant sanctions to a handful of Iranian oil customers, accelerating its mission to bring exports to the Islamic Republic to zero.
Trump withdrew unilaterally from Iran's 201
The market expected largely that Washington would extend the exemptions for five of the countries. However, there are sources that say that any country still importing oil from Iran will be subject to US sanctions from 2 May.
The Trump government will work with Iran's rival Saudi Arabia and the United Arab Emirates to offset the decline in Iranian supplies, White House said.
The Saudis and Emiratis are currently working with their other OPEC members and several other oil-producing nations, including Russia, to limit oil supplies. The so-called OPEC + Alliance has been trying since January to keep 1.2 million bpd from the market after oil prices plummeted in the last few months of 2018.
The White House announcement suggests that the group will soon reverse its course
"The Trump administration and our allies are determined to maintain and expand the campaign against Iran with maximum economic pressure for the destabilizing To end activities of the regime that threaten the United States, our partners and allies, and security in the Middle East. " the White House said.
Three of the countries that have received the exemptions – Greece, Italy and Taiwan – have already reduced their imports to zero. However, analysts widely expected the Trump government to extend the exemptions to China, India, Japan, South Korea, and Turkey. These took advantage of the exceptions during the first half of the year, which began in November.