Iran oil waivers
November 9, 2018 -- The Trump administration has granted a 180-day waiver to Iran’s eight biggest oil buyers, allowing them to keep buying oil at reduced rates.
The threat of sanctions had already reduced exports since President Trump withdrew from the Iran nuclear deal in May, from a peak of 2.83 million barrels per day (mbpd) in April to some 1.6 mbpd in October -- a fall of some 47 per cent.
The administration has retreated from its original goal of reducing Iran’s oil exports to zero by issuing waivers to Iran’s biggest buyers -- China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey -- while limiting their imports to 1.5 mbpd.
In September, Iranian tanker skippers began turning off transponders in an effort by Tehran to keep oil flowing ahead of the sanctions. By late October all Iranian vessels had vanished from international tracking systems, according to TankerTrackers.com.
According to OPEC, the value of Iran’s petroleum exports in 2017 was $52,7 billion. It’s hard to gauge the impact of sanctions on Iran, but at current prices, Iran’s inability to sell oil could cost it more than $25 billion a year.