Iranian Foreign Minister Mohammad Javad Zarif on Monday shrugged off the forthcoming USA sanctions against the Islamic Republic, saying Washington would fail to achieve its goals by imposing new bans on Iran. Of the eight countries receiving the waivers, six will import at "greatly reduced levels", he said.
It was a more conciliatory tone about the sanctions from Bolton, a proponent of being tough on Iran and winding down its crude exports to zero.
Pompeo said the countries agreed that the payments for the oil will go into offshore accounts that Iran will only be able to tap for "humanitarian trade, or bilateral trade in non-sanctioned goods and services".
"In practical terms, this will mean that E.U. member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world", she told reporters.
Bloomberg reported that close us allies South Korea and Japan had received waivers along with India, which relies heavily on supplies from Iran, adding that a list of all countries getting waivers was expected to be released officially on Monday. These sanctions are a pressure tactic to constrain Iran's nuclear programme.More news: Global response to Saudi journalist's murder 'late yet strong'
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"Year-on-year growth in United States crude oil production has averaged nearly 1.5 million barrels per day in the first eight months of the year. with output from many key producing regions reaching new all-time highs", said Barclays bank.
"We still expect that the global oil market will be in deficit in 4Q18", the USA bank said.
"In May, President Donald Trump pulled the USA out of the 2015 landmark joint comprehensive plan of action (JCPOA) terming it as disastrous".
The administration's decision to issue waivers to eight countries also marked a significant reduction from the Obama administration, which issued such exemptions to 20 countries over three years.
"I think it's important that we not relax in the effort" to keep putting pressure on Tehran, he said.
Countries that get waivers under the revived sanctions must pay for the oil into escrow accounts in their local currency.
That's significantly lower than the peak of 2.7 million bpd in June this year, but still stubbornly high compared to some analyst estimates that the predicted sanctions could possibly choke off close to 2 million bpd of Iran's oil exports.