Eight Countries Exempted from Iran's Oil Sanctions

As the United States begins its oil sanctions against Iran, it announced the names of eight countries exempt from these sanctions. On Monday, November 5, U.S. Secretary of State Mike Pompeo announced that China, India, Japan, South Korea, Turkey, Italy, Greece, and Taiwan are exempt from Iran's oil sanctions. According to Reuters, he stated that these countries have reduced their oil purchases from Iran over the past six months and are included in the exemption from U.S. sanctions. Pompeo mentioned that 20 other customers of Iran have completely stopped purchasing oil from the Islamic Republic, and the country's oil exports have decreased by about one million barrels since the U.S. withdrew from the JCPOA. He noted that Iran has lost $2.5 billion in oil revenues since May (the date of the U.S. exit from the JCPOA). When the U.S. exited the JCPOA, it stated that it would give Iran's customers until mid-November to completely stop purchasing oil from the Islamic Republic. However, this position was later adjusted, and recently U.S. officials acknowledged that negotiations are being held with some customers regarding exemptions from sanctions. Early last month, oil prices had risen above $86, but the adjustment of the U.S. position, increased OPEC oil production, and the outlook for slower global oil demand growth for the next year caused oil prices to fall back below $74. The exemption from U.S. sanctions for the mentioned eight countries has been granted for six months. During the previous round of sanctions (2012 to 2015), the U.S. also gave its customers six months to significantly (20 percent) reduce their oil purchases. Pompeo stated that the U.S. has temporarily granted exemptions to these eight countries to ensure sufficient oil supply to the market. The U.S. has given Iran's customers the opportunity to adjust to a complete halt of oil purchases in the future. Meanwhile, the energy consulting firm Wood Mackenzie reports that Iran's oil and gas condensate exports were about 2.8 million barrels in May, which has now decreased to 1.8 million barrels per day. Homayoun Falakshahi, an expert from this firm, told Reuters that Iran is struggling to increase its exports, as oil is traded in international markets in U.S. dollars, and all parties involved in this trade, including international companies, banks, and traders, face restrictions. Iranian President Hassan Rouhani stated on Monday morning, shortly after the sanctions returned, "We announce that we will proudly circumvent your illegal and oppressive sanctions because your sanctions are contrary to international regulations." In recent weeks, multiple reports have emerged about Iran's attempts to secretly export oil using methods such as "stealth signaling" of oil tankers. Iran has also recently begun selling oil to the private sector in the energy exchange to utilize their capacity for oil sales. In the first oil offering, 280,000 barrels were sold, and the second offering is scheduled for November 9. In this context, what will happen to the financial institutions sanctioned by the U.S.? Iran has called for UN action against U.S. sanctions. Netanyahu: The start of severe U.S. sanctions against Iran is a "historic day." Global reactions to the full return of U.S. sanctions against Iran. Details of the reinstatement of U.S. sanctions; hundreds of Iranian companies and individuals have been sanctioned. Severe government repression and the risk of "underground" protests. What doctors and eyewitnesses recount about the injured in protests. The revelation of limitations on China-Iran relations amid protests.