United States is expected to announce on Monday that buyers of
Iranian oil need to end imports soon or face sanctions, a source
familiar with the situation told Reuters, triggering a 3 percent
jump in crude prices to their highest for 2019 so far.
"They (the U.S. administration) have to take care of their
allies, strategic partners. Under sanctions from the beginning,
there was talk of a gradual reduction and not going to zero on
one stroke," said the source, who did not wish to be identified
due to the sensitivity of the issue.
India, Iran's biggest oil client after China, has almost halved
its Iran oil purchase since November. That was when Washington
granted significant reduction exceptions (SREs) from sanctions
to countries, including India.
"Under SREs we hope they will give us relaxation and allow us to
buy some Iranian oil,” the source added.
Indian refiners have not yet placed orders to lift Iranian oil
in May, pending clarity on whether Washington will extend the
(Reporting by Nidhi Verma; Edited by Martin Howell)
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