Iran threat to pull out oil cushion

Iranian First Vice President Es'haq Jahangiri

Iranian First Vice President Es'haq Jahangiri

However, Iran was now "treating us with much more respect right now, than they did in the past", Trump added.

In an address at a seminar on Tuesday, Rahaghi said Iran will end the privileges being provided to India if it tries to source oil from countries like Saudi Arabia, Russia, Iraq, the USA and others to offset cuts in Iranian oil import.

Iran's vice president acknowledged Tuesday that U.S. sanctions would hurt the economy, but promised to "sell as much oil as we can" and protect banking.

The embassy said Iran will do its best to ensure security of oil supply to India by offering various flexible measures which facilitate bilateral trade, particularly Indian exports to Iran.

Referring to the U.S. sanctions on oil import from Iran, Rahaghi made it a point to mention that his country has been a reliable energy partner for India and has always followed a "rationale pricing" of oil which ensures the interest of both, consumers and suppliers.

The newspaper also pointed out that US President Donald Trump recently asked Saudi Arabia to pump at least 2 million more barrels a day, but received a reply that stopped short of a commitment to do so.

President Donald Trump withdrew the US from the 2015 nuclear deal on May 8 and plans to re-impose sanctions on Iran. We coordinated - we discussed USA oil sanctions to deny Iran revenue to finance terrorism. Pompeo said that the US would consider waivers for certain countries that wish to import Iranian oil, but added that Washington is determined to take a hard line on Tehran.

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Shana also reported that traditional importers of the Iranian oil - China, India, South Korea, and Japan - purchased more than 60 per cent of the Iranian output in April.

Iran is the third-largest exporter of crude oil in the world, behind Saudi Arabia and Russian Federation. "We are looking for a mini-term deal to buy three to four cargoes of USA oil over a period of three to six months instead of buying single cargoes".

Iran on Tuesday indicated withdrawal of all privileges extended to India in bilateral trade, including payments in rupee and long-term credit, if New Delhi cuts back on oil imports from Tehran in the wake of United States sanctions on oil trade that will kick in on November 4.

Sources told Reuters last month that private refiners Nayara Energy and Reliance Industries Ltd plan to halt Iranian oil imports.

June's 228,000 bpd of US exports to India are more than double the previous export record of 98,000 bpd last September, according to US Energy Information Administration data.

Indian refiners will likely gain more clarity on how much the United States would like them to cut after a meeting with US officials scheduled for July 16 to 17, said an official with a state-run refiner who declined to be named due to the sensitivity of the matter.

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