Hook: Three More Countries Have Reduced Oil Imports from Iran to Zero

The U.S. State Department's Iran envoy stated that three out of eight countries that had received temporary exemptions from Washington to purchase Iranian oil have reduced their imports to zero. Brian Hook confirmed on March 4 that 'in November (last year), we granted exemptions to eight countries to prevent an increase in oil prices. I can now confirm that three of those countries have brought their oil imports to zero.' Following the Trump administration's withdrawal from the JCPOA and the reimposition of sanctions, Secretary of State Mike Pompeo announced in mid-November last year that China, India, Japan, South Korea, Turkey, Italy, Greece, and Taiwan were exempt from Iranian oil sanctions. These exemptions were granted for six months. At that time, Pompeo stated that 20 other Iranian oil customers had completely halted their purchases. On Tuesday, Hook told reporters, 'To move towards reducing [Iran's oil sales] to zero, there are better conditions in the market.' He emphasized that Washington is not seeking to grant any 'exemptions or exceptions.' The U.S. State Department official stated that oil sanctions have reduced Iran's exports by 1.5 million barrels since May 2018, preventing the Iranian government from accessing over $10 billion in oil revenue, approximately $30 million per day. Yesterday, after the U.S. government announced its intention to target more sectors of the Iranian economy with sanctions, global oil prices reached a new record in 2019, surpassing $69 per barrel. Reuters, referencing new sanctions against Iran and the Venezuelan crisis, reported that this figure is moving towards $70 per barrel. Analysts suggest that the U.S. government may extend exemptions for five countries buying Iranian oil to prevent an increase in oil prices and show leniency to Iran's main oil buyers, namely India and China. These five potential countries are South Korea, Japan, China, India, and Turkey. It has also been reported that Greece, Italy, and Taiwan may be deprived of new exemptions. A group of analysts, including Fereydoun Khavand, an economic analyst at Radio Farda, stated that the decline in Iran's oil exports is currently severely impacting the country's main source of foreign currency revenue. On the other hand, Iranian officials have reacted to U.S. threats regarding reducing oil sales to zero; some of these reactions were threatening, while in some cases, officials from Hassan Rouhani's government stated that Tehran has found new customers and sold its oil to them, asserting that oil sales will not reach zero. The six-month opportunity given by the U.S. to eight Iranian customers for limited oil imports will end in May.