Armed with waivers to keep importing Iranian oil without running afoul of U.S. sanctions, some of the Islamic Republic’s top customers are preparing to buy.
The exemptions mean at least some supplies from OPEC’s third-biggest producer will keep flowing into international markets, after its exports plunged almost 40 percent since April — the month before Washington announced the curbs. In a bid to keep customers, the state-run National Iranian Oil Co. has been offering record discounts on its crude.
Almost all major buyers of Iran’s oil had negotiated with the U.S. for the waivers, arguing that cutting purchases to zero would affect their energy industries and boost fuel costs. U.S. Secretary of State Michael Pompeo has defended the exemptions and said the Trump administration’s campaign to pressure Iran has already reduced exports by over 1 million barrels a day and they’ll continue to shrink.
India, China and South Korea, three of Asia’s top four buyers, got waivers allowing them to purchase a combined 860,000 barrels a day. The levels for Japan, Italy and Greece are yet to be confirmed. Turkey got waivers for about 60,000 a day, far less than it bought in 2017.