U.S. warns nations against trade with Iran

U.S. Secretary of State Mike Pompeo on Monday warned nations against interacting with Iran in violation of the sanctions. “Any nation or entity interacting with Iran should do its diligence and err on the side of caution. The risks are simply not going to be worth the benefits,” Mr. Pompeo said.

Earlier in April, India’s Ministry of External Affairs (MEA), had said that India and the U.S. were “continually engaged” on the issue of India’s oil imports from Iran since sanctions kicked in last November, The Hindu had reported.

U.S. Under Secretary for Terrorism and Financial Intelligence Sigal Mandelkar had visited New Delhi in early April to discuss the issue.

That an announcement of this nature was imminent, was first reported by the Washington Post on Sunday. The price of global benchmark brent crude hit a six-month intraday high on Monday.

Oil exports from Iran hit a low of 1.0 to 1.0 million bpd in March this year – down from 2.5 million bpd in April 2018. The U.S. announced that it would withdraw from the Joint Comprehensive Plan of Action (JCPOA) or “ Iran deal” in May.

The U.S. has tried to allay fears that oil markets will be impacted following the decision to stop exemptions. Organization of the Petroleum Exporting Countries (OPEC), the global oil cartel led by Saudi Arabia, has been coordinating with Russia to cut oil supply since January.

“Saudi Arabia and others in OPEC will more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil,” U.S. President Donald Trump tweeted on Monday.

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