Mnuchin: We Will Consider Exemptions from Oil Sanctions Against Iran in Specific Cases

Steven Mnuchin, the U.S. Treasury Secretary, stated that the United States will consider issuing exemptions from Iran's oil sanctions for certain specified countries. According to Reuters, Mnuchin clarified that such exemptions would be aimed at preventing disruption in global oil markets. The U.S. Treasury Secretary said, 'We want countries to reduce their oil purchases (from Iran) to zero, but if they cannot do this overnight, we will make exceptions.' Reuters reports that Mnuchin made these remarks on Friday, July 13, but journalists were only allowed to publish them on Monday. The news agency adds that the Treasury Secretary's comments were made in response to statements from other U.S. officials who had said that no exemptions would be issued for Iran's oil sanctions. Following the U.S. withdrawal from the nuclear agreement with Iran, known as the JCPOA, on May 8, the U.S. State Department's policy director announced that a new round of severe sanctions against Iran would take effect on August 4, with the next phase starting on November 4, and efforts would be made to reduce Iran's oil exports to zero. Meanwhile, reports indicate that U.S. officials are set to discuss Iran's oil sanctions with Indian officials this week. Andrew Lipow, president of an oil company in Houston, Texas, told Reuters that India will likely ask the U.S. to ensure adequate supply in the global oil market. Lipow added, 'Iran exports more than 2.2 million barrels of oil daily, half of which is purchased by China and India. Therefore, bringing India on board with the sanctions against Iran is very important for the U.S.' In this context, Abbas Araghchi, Iran's Deputy Foreign Minister, has traveled to New Delhi to discuss relations between the two countries. Steven Mnuchin is set to participate in this week's G20 meeting in Buenos Aires, Argentina, and is likely to negotiate with his counterparts from developed and developing countries regarding Iran's sanctions. The U.S. Treasury Secretary emphasized that there will be no 'blanket exemptions' regarding Iran's sanctions, adding, 'We want to act very carefully regarding the gradual cessation of (oil imports from Iran) in global energy markets and ensure that countries have the necessary time to do so.' However, the French finance minister announced on Friday that the United States had rejected France's request for exemptions for its companies from the new Iranian sanctions. Mnuchin also stated on Thursday that if China, Russia, and Europe continue to buy oil from Iran, they will be subject to Washington's sanctions. According to reports, the U.S. is also negotiating with some OPEC members, including Saudi Arabia, to compensate for the reduction in Iranian oil production by increasing their own output.