Skip to content
Search

Latest Stories

US Grants Waivers To Major Iranian Crude Oil Importers As Sanctions Against Tehran Starts

The United States re-introduced sanctions against Iranian crude oil exports on Monday (5), although it also gave some of its closest allies exemptions that will allow Tehran's biggest customers, mostly in Asia, to still buy crude for now.

India and China are also seeking waivers from the US’s crude oil sanctions.


Washington restored measures lifted under a 2015 nuclear deal negotiated with Tehran by the administration of president Barack Obama, adding as well 300 new designations including Iran's crude oil, shipping, insurance and banking sectors, aiming to cripple Iran's main export revenues from the petroleum industry.

Despite this, Iran will continue to sell some crude oil as the United States has granted sanctions waivers to some of its closest allies in Asia.

Washington said last week, it will temporarily allow eight importers to keep buying Iranian crude oil. It did not name who had received the exemptions or provide any further details.

South Korea said on Monday it has been granted a waiver to at least temporarily continue to import condensate from Iran and also still continue financial transactions with the middle-eastern country. The super-light crude oil is a critical feedstock for South Korea's huge petrochemical industry.

South Korea, a US ally and one of Asia's biggest buyers of Iranian crude oil, asked Washington for "maximum flexibility" last week, after some of its construction firms cancelled energy-related contracts in the Islamic Republic due to financing difficulties.

Under the US law, exceptions to the renewed Iran sanctions can be granted for up to 180 days.

Japan said on Monday it was in close communication with the United States on the measures, although chief cabinet secretary Yoshihide Suga declined to provide any details.

Japan has asked that sanctions should not have an adverse impact on the activities of Japanese companies, Suga said.

Other Asian buyers of Iranian crude oil, including its two biggest economies, China and India, are also seeking waivers.

Chinese foreign ministry spokeswoman Hua Chunying said on Monday that China expressed regret at the US decision to re-impose sanctions on Iran and reiterated its objections to unilateral sanctions, but she would not directly say if China had or had not been granted an exemption.

"China and Iran carrying out normal cooperation under the framework of international law is lawful and reasonable, and should be respected and protected," Hua told a daily news briefing in Beijing.

Turkish trade minister Ruhsar Pekcan said on Saturday (3) that Turkey has received indications that it will be among the countries to be granted a waiver from US sanctions against Iran, but it is still awaiting clarification on Monday.

Some European countries may also receive exemptions.

Iran's biggest crude oil buyers over the past years have been China, India, South Korea, Turkey, Italy, the United Arab Emirates and Japan. Taiwan also occasionally buys cargoes of Iranian crude, but is not a major buyer.

Iran itself said it would simply ignore the sanctions.

With major buyers receiving exemptions, markets did not react strongly to the start of the sanctions, with benchmark Brent crude oil prices trading around $72.60 per barrel at 0655 GMT, down 0.3 per cent from their previous close and more than 15 per cent below their most recent peak in early October.

"Oil fell as US sanctions on Iran proved to be less severe than previously anticipated," said Hussein Sayed, chief market strategist at futures brokerage FXTM.

"Exempting eight countries from the US sanctions means Iranian crude oil will continue to flow and there's no longer risk of a supply shortage," he said.

Crude oil markets have been preparing for the sanctions for months.

"Iranian exports and production had been declining steadily ... Iranian exports show a decline of more than one million barrels per day (bpd) as of October from May," said Edward Bell of Emirates NBD bank.

Reuters

More For You

‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less
single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less