Economy

Trump administration seeks to drop Iran's oil revenue to nothing

Trump administration seeks to drop Iran's oil revenue to nothing

Iran announced on Sunday that it would permit private companies to export crude oil as Tehran attempts to thwart USA sanctions against the country's oil industry. Last week, Turkey's economy minister said his country does not plan to abide by the USA demand for countries to stop importing Iranian oil, calling the request "nonbinding" on Turkey - a stinging rebuke from a North Atlantic Treaty Organisation ally.

The market is also anticipating significant reductions in oil exports from Iran over the next few months.

At the time, the Trump administration gave foreign companies either 90 or 180 days to wind down their business with Iranian counterparts, depending on the type of commercial activity.

Hook declined to say if the kingdom can offer that additional supply, but the U.S. is "working to minimize disruptions to the global market", Hook said.

Trump, who is spending the weekend at his golf property in New Jersey, said in a tweet on Saturday that Saudi Arabia's King Salman bin Abdulaziz Al Saud had agreed to produce more oil.

Last month President Donald Trump withdrew the United States from the 2015 landmark Iran nuclear deal, re-imposing U.S. sanctions that had been suspended in return for curbs on Tehran's nuclear programme.

"Prices to high! He has agreed!"

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Some 50 global companies had announced their intention to leave the Iranian market, particularly in energy and financial sectors, as the United States moved to reimpose the sanctions against Iran, Hook said.

"We're not granting waivers", the official said.

Rouhani accused the United States of trying to fully prevent the Iranian oil export.

At the same time, the official said, the United States would work with countries that import Iranian crude on a "case by case" basis, signaling that the Trump administration might not immediately impose sanctions on those that continue importing from Iran beyond a November 4 deadline.

The growing importance of USA oil production is likely changing how OPEC producers think about responding to rising prices.

"Iranian crude oil will be offered on the bourse and the private sector can export it in a transparent way", First Vice President Eshaq Jahangiri told an economic event in Tehran broadcasted live on state television.

But members did not reach a decision "to assign any allocated production level of any member to others", Iran's oil minister Bijan Zangeneh said in a letter addressed to the oil cartel published by the ministry's Shana news agency. "They don't want our farm products". But he says the United States "is prepared to work with countries that are reducing their imports on a case-by-case basis".