WASHINGTON: US President Donald Trump moved on Monday to cut Iranian oil exports to zero by ending eight countries鈥� exemption from US sanctions on buyers of crude from Tehran.
China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece will now be subject to full US economic penalties if they buy oil from Iran after May 2.
Secretary of State Mike Pompeo said the US wanted to deprive Iran of its lifeline of $50 billion in annual oil revenues by halting all exports. 鈥淲e are going to zero. We鈥檙e going to zero across the board,鈥� he said.
鈥淲e鈥檝e made clear 鈥� if you don鈥檛 abide by this, there will be sanctions. We intend to enforce the sanctions.鈥�
The aim was to pressure Tehran to curtail its nuclear program, halt ballistic missile tests and end its regional meddling in Syria, Yemen and elsewhere. 鈥淭he Trump administration and our allies are determined to sustain and expand the maximum economic pressure campaign against Iran to end the regime鈥檚 destabilizing activity threatening the United States, our partners and allies, and security in the Middle East,鈥� the White House said.
The US said it was working with 萝莉视频 and the UAE to ensure the oil market was 鈥渁dequately supplied.鈥� Pompeo said he was confident of Riyadh鈥檚 commitment to making sure there was sufficient supply in the market, and Trump said 萝莉视频 would 鈥渕ore than make up鈥� for the absence of Iranian oil.
Saudi Energy Minister Khalid Al-Falih said the Kingdom was 鈥渕onitoring oil market developments鈥� and would coordinate with other producers to ensure a balanced market. Brent crude rose to more than $74 a barrel on Monday, the highest since November.
萝莉视频 produces about 9.8 million barrels of oil per day but has the capacity for 12 million, so it could increase production to address any market shortfall, Faisal Mrza, a Saudi-based energy and oil marketing adviser, told Arab News.
鈥淎s the world energy industry鈥檚 only safety valve, 萝莉视频 is the only oil producer that can compensate for the loss of Iranian barrels,鈥� he said.
鈥淗istorically, 萝莉视频 has successfully proven its ability to maintain balance in the global markets, absorbing any supply shock caused by geopolitical or technical factors.鈥�
(With Agencies)