The United States has demanded a cut off of Iranian oil exports to major importers like China and India who had been granted exemptions from sanctions, sending crude prices to six-month highs.
Secretary of State Mike Pompeo says the aim is to halt Iran’s exports entirely, as the US continues to pressure Tehran to curtail its nuclear program, ballistic missile tests and support for conflicts in Syria and Yemen.
The Trump administration said it was working with top oil exporters Saudi Arabia and the United Arab Emirates to ensure the oil market was “adequately supplied”.
However the market, already fretting about tight supplies, raised skepticism about whether Riyadh could take a slower approach in boosting exports.
The US reimposed sanctions in November on exports of Iranian oil after President Donald Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers last May.
After renewing sanctions, it granted waivers to eight major buyers for a six-month period, which ends in May.
“We are going to zero. We’re going to zero across the board,” Pompeo said on Monday, adding that the US had no plans for a grace period beyond May 1 for countries to comply.
He said the aim is to deprive Iran of its lifeline of $US50 billion ($A70 billion) in annual oil revenues.
The international Brent crude oil benchmark rose to more than $US74 ($A104) a barrel on Monday, the highest since November, due to the uncertainty surrounding increased supply from Saudi Arabia and other OPEC nations, while US prices surpassed $US65 ($A91) a barrel for the first time since November.
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