Iran offers oil price discounts for Asian customers

Iran is providing discounted oil prices to Asian markets, the Islamic Republic News Agency (IRNA) quoted an informed source at Iran’s Ministry of Petroleum as saying on Monday.

According to IRNA, the move has been taken based on the norms of the oil market and in harmony with discounts given by other oil exporters.

“Discount is part of the nature of the global markets being offered by all oil exporters,” IRNA stated.

China and India still continue importing Iran’s oil regardless of the U.S.’ exit from the Iran nuclear agreement in May and its pressure on other countries to follow Washington’s sanctions against Iran.

Tension between Washington and Tehran mounted since May, when the U.S. withdrew from a 2015 nuclear deal signed between Iran and the P5+1 group of nations – the five permanent UN Security Council members plus Germany.

The 2015 agreement placed strict restrictions on Iran’s nuclear program in exchange for billions of dollars in sanctions relief.

On July 2, the U.S. State Department announced its intention to reduce Iranian oil revenue to zero. The following day, Iran’s President Hassan Rouhani warned that if the U.S. impeded Iran’s oil exports, those of the region’s other oil producers would suffer a similar fate.

The first round of the U.S. pre-nuclear deal sanctions on Iran, largely targeting the country’s banking sector, became effective on Aug. 7.

The second round of the U.S. sanctions, which is expected to come into effect on Nov. 5, targets Iran’s energy sector.

Iran exports 2.2 million barrels of oil daily to China, India, the European Union, South Korea and Japan.

 

 

Source: aa.com