Iranian Oil Imports Will Not Be Decreased, China Tells US

Iranian Oil Imports Will Not Be Decreased, China Tells US

Three months ago, the United States withdrew from a 2015 agreement among world powers and Iran in which worldwide sanctions against Tehran were lifted.

What's next for Iran oil?

Last month, Iran's Supreme Leader Ayatollah Ali Khamenei backed President Hassan Rouhani's suggestion that Iran may block Gulf oil exports if its own exports are stopped. Their arrival means state carrier Iran Air has received 13 of the 20 it ordered from the French-Italian manufacturer in April 2017.

The Chinese position comes as the debate over the Iranian deal butts up against tense U.S.

The nuclear deal lifted worldwide sanctions in return for Iran limiting its nuclear program and allowing regular inspections. "Because of some internal problems that Saudi Arabia is facing and certain foreign issues, Mr. Trump's election (as the U.S. president) and the relations he has established with Saudi Arabia, and Trump's analyses of Iran, they (Saudis) are somehow under the illusion that they may win more concessions from Iran through patience".

The controversial move was preceded by a deadly crush of Hajj pilgrims in September 2015, which killed more than 460 Iranians.

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The nuclear deal with world powers would have allowed Iran to replace its entire domestic fleet although military aircraft were always prohibited.

A second wave of sanctions will be re-imposed in November that target Iran's energy and banking sectors.

To keep its shipment flowing Iran has offered insurance for oil cargo and ships to supply oil to India, its top oil client after China.

But as Ritterbusch indicated, jittery traders could send prices in one direction or another based on whatever analytical theory makes headlines, and on Friday Helima Croft, global head of commodity strategy for RBC Capital Markets declared that the oil market will tighten shortly.

"This exercise was conducted with the aim of controlling and safeguarding the safety of the worldwide waterway [in the Persian Gulf]", said General Ramazan Sharif, spokesman for Iranian Revolutionary Guards according to state news agency IRNA.

But as the new Indian fiscal year began in April, refiners have been taking more Iranian oil imports compared to the previous fiscal year, as Iran offered incentives such as extended credit periods and nearly free shipping to keep its market share in India-Tehran's second-largest oil customer after China.

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