US Exempts Seven Countries From Iran Oil Sanctions

The U.S. added seven nations to the list of countries exempted from Iran oil sanctions, Secretary of State Hillary Clinton said.

The countries are India, Malaysia, South Korea, South Africa, Sri Lanka, Turkey and Taiwan. They “have all significantly reduced their volume of crude oil purchases from Iran,” Clinton announced today in an e-mailed statement.

China, the leading importer of Iranian crude as of the first half of last year, and Singapore weren’t granted exemptions.

“By reducing Iran’s oil sales, we are sending a decisive message to Iran’s leaders: Until they take concrete actions to satisfy the concerns of the international community, they will continue to face increasing isolation and pressure,” Clinton said.

Clinton announced in March that an “initial group” of countries — Japan and 10 European Union nations — had “significantly reduced” their Iranian oil purchases and thus qualified for an exemption under a sanctions law for a renewable period of 180 days.

Oil fell to an eight-month low in New York today on skepticism that Spain’s bailout plan will succeed in easing the euro region’s debt crisis, which is slowing economic growth and curbing fuel use. Crude oil for July delivery declined $1.40 to $82.70 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 6. The contract increased as much as $2.54, or 3 percent, early in the session. Prices have fallen 17 percent this year.
‘Significantly Reduced’

India and South Korea, exempted today, were the third- and fourth-largest buyers of Iranian oil in the first half of last year, according to the U.S. Department of Energy.

Under the U.S. law enacted Dec. 31, nations have until June 28 to demonstrate they have “significantly reduced” the volume of their Iranian crude purchases — or their banks that settle oil trades with Iran may be cut off from the U.S. financial system. The U.S. hasn’t defined what counts as a significant reduction. Obama administration officials, speaking on condition of anonymity because of the sensitivity of the issue, said in March they’re looking for reductions of about 15 percent or more, depending on each nation’s circumstances.

The sanctions are part of a coordinated campaign by the U.S. and the EU to ratchet up economic pressure on Iran’s leaders to persuade them to abandon any illicit aspects of their nuclear program.

U.S., European and Israeli officials have accused Iran of seeking the capability to build a nuclear weapon. United Nations inspectors, in a report released Nov. 8, raised questions about possible military dimensions of Iran’s program. Iran says its program is solely for civilian energy and medical research.

Iran is the No. 2 producer in the Organization of Petroleum Exporting Countries, and earns more than half of its government revenue from oil sales, according to the International Monetary Fund.

 – Bloomberg