Reuters: The U.S. Aims to Reduce Iran's Oil Exports to Below One Million Barrels

According to Reuters, citing news sources, the Trump administration intends to reduce Iran's oil exports by 20% starting in May, bringing the total below one million barrels per day. One source familiar with recent developments told Reuters: "Currently, the [government's] goal is to reduce Iran's total oil exports to below one million barrels per day." The aforementioned news sources in the March 13 report stated that the Trump administration is aware of the consequences of cutting Iran's total oil exports on global markets, and "bringing it to zero may be difficult." Just a day before this report was published, U.S. Secretary of State Mike Pompeo stated in a meeting with executives from major oil companies and several oil ministers that the U.S. remains committed to completely cutting off Iran's oil exports. Brian Hook, the U.S. special representative for Iran, also said at the same conference that the global oil surplus helps the U.S. accelerate its plan to bring Iran's oil exports to zero. Iranian officials claim that cutting off Iran's oil exports is not feasible. The Iranian Vice President stated that Washington's plans in this regard have "failed." Several senior military officials in Iran have also threatened to "close the Strait of Hormuz," which some experts and analysts consider unlikely. Pompeo stated that the U.S. remains committed to reducing Iran's oil exports to "zero." Brian Hook noted that sanctions have reduced Iran's oil revenues by $10 billion. One source in conversation with Reuters said that a price of $65 per barrel is the "last margin that Donald Trump can tolerate," meaning that the U.S. President is not keen on allowing prices to rise above $65 per barrel, whereas Brent oil had reached over $67 on the day the Reuters report was published. Simultaneously, oil production in Venezuela, a country rich in oil resources, has also impacted the increase in oil prices. Donald Trump, who has always criticized the negotiations and the subsequent nuclear deal made between Iran and six world powers during Barack Obama's presidency, has withdrawn from this agreement. The U.S. has reinstated all previous sanctions in two rounds and added new entities and names to the sanctions list. In addition to stating its intention to bring Iran's oil exports "to zero," the U.S. claims to have implemented a "maximum pressure" campaign to force Iran to "change its behavior" through the imposition of "the toughest sanctions in history." The U.S. Secretary of State has set 12 conditions, mainly related to Iran's actions and activities in the region, its ballistic missile development, and other issues. U.S. officials claim they do not intend to harm the Iranian people. The Islamic Republic asserts that the U.S. withdrawal from the JCPOA, an agreement endorsed by the UN Security Council, is "illegal." Tehran denies allegations of interference in regional affairs and states that its missile program is "defensive" and that it has no intention of abandoning it. However, Iranian officials have repeatedly threatened Israel with "destruction," a matter that has faced criticism from various countries and the UN. Sources in conversation with Reuters have indicated that the U.S. government may refrain from extending some exemptions for those countries that have not utilized Iran's oil exemptions. Greece, Italy, Taiwan, China, India, Turkey, South Korea, and Japan are among the countries that have received exemptions. India, China, and Turkey are the most significant buyers of Iranian oil. Amos Hochstein, an official responsible for Iran sanctions during Barack Obama's presidency, told Reuters that China and India alone purchase between 800,000 to 900,000 barrels of oil per day from Iran. Mr. Hochstein stated that looking at the market, "it seems reasonable that Iran's oil exports remain between 800,000 to 1.1 million barrels per day."