Iran's Oil Buyers 'Will Not Purchase Even a Barrel Beyond Their Exemption'

The Iranian Deputy Minister of Oil for International Trade and Commerce has acknowledged that the eight countries that have successfully received exemptions from the U.S. to continue buying oil from Iran are unwilling to purchase even a barrel beyond their exempted amounts. Amir Hossein Zamani-Nia, in an interview with the official news agency of the Iranian Ministry of Oil, Shana, published on Saturday, January 5, pointed out that major buyers of Iranian oil, including China, India, Japan, South Korea, and others, are not willing to buy even a barrel more than their exemption due to 'pressure and financial influence from the U.S.' After the U.S. withdrew from the nuclear agreement with Iran in May of this year, it reinstated unilateral sanctions against the Islamic Republic, targeting oil sales and banking transactions. However, the Trump administration, determined to reduce Iran's oil exports to zero, granted exemptions to eight major buyers of Iranian oil to allow them to gradually reduce their imports from Iran. Now, Amir Hossein Zamani-Nia has acknowledged the success of the U.S. in pressuring these major oil buyers but stated that Iran is still actively seeking new customers and that 'due to the competitiveness of the market,' the number of potential customers for Iranian oil has 'increased significantly.' In addition to China, India, Japan, and South Korea, four other countries have successfully obtained a six-month exemption for purchasing oil from Iran, namely Italy, Greece, Taiwan, and Turkey. The aim of these sanctions and the U.S. campaign to reduce Iran's oil exports to zero is to pressure the Islamic Republic into participating in new negotiations that would address not only the nuclear program but also other criticized aspects of Iran's behavior, including its missile program and regional interventions. However, Tehran has rejected renegotiating its nuclear program and describes its missile program as part of its defensive and red line. Since the U.S. withdrawal from the JCPOA, other parties to the nuclear agreement, including European countries, have encouraged Iran to adhere to the nuclear agreement, and the European Union has announced its decision to create a special financial mechanism to facilitate and guarantee trade with Iran. However, the establishment of this special mechanism, which was supposed to be implemented simultaneously with the reinstatement of the second round of U.S. sanctions in November, has been delayed due to U.S. pressures, including lobbying against the hosting of this mechanism by European Union countries. In this regard, the Iranian Deputy Minister of Oil has also stated that the proposed special mechanism by Europe for trade with Iran 'will be implemented and will be helpful, but it is not a solution' because, according to him, 'in fact, any action that the Europeans want to take is subject to U.S. influence.' The delay in launching the European special mechanism for trade with Iran has sparked criticism, and among others, the Leader of the Islamic Republic has stated that looking to Europe is of no benefit other than waiting and that the government should lose hope in matters such as the JCPOA. However, another group of Iranian officials believes that taking practical action regarding Europe's slow progress in creating a financial mechanism for continuing trade with Iran is not advisable.