U.S. to impose sanctions on allies in drive to push Iranian oil sales to zero

Secretary of State Mike Pompeo speaks during a news conference on April 22 at the State Department in Washington. (Sait Serkan Gurbuz/AP)

https://www.washingtonpost.com/world/national-security/us-to-impose-sanctions-on-allies-in-drive-to-push-iran-oil-sales-to-zero/2019/04/22/cf9e7a93-d052-4951-b754-e1e5b068a224_story.html?utm_term=.d4ac326b406b

“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” a statement from the White House said. It said the United States, Saudi Arabia and the United Arab Emirates would ensure global demand is met.

Pompeo said Iran had been taking in $50 billion a year in oil revenue before the sanctions were reimposed. He estimated that U.S. sanctions have cost the Islamic republic $10 billion so far.

“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” a statement from the White House said. It said the United States, Saudi Arabia and the United Arab Emirates would ensure global demand is met.

Pompeo said Iran had been taking in $50 billion a year in oil revenue before the sanctions were reimposed. He estimated that U.S. sanctions have cost the Islamic republic $10 billion so far.

“The regime would have used that money to support terror groups like Hamas and Hezbollah and continue with its missile development in defiance of U.N. Security Council Resolution 2231,” he told reporters. “And it would have perpetuated a humanitarian crisis in Yemen.”

Last November, the administration reimposed sanctions that had been lifted with the 2015 nuclear agreement. President Trump granted waivers to eight of Iran’s biggest customers, allowing them a six-month grace period to wind down their purchases. The big buyers are China, India, Japan, South Korea, Italy, Greece, Turkey and Taiwan.

The waivers expire May 2, one year after the United States withdrew from the Iran nuclear deal. Initially, countries were given six months to wean themselves from oil, but seven countries and Taiwan could not meet the target and were given another six months.

Some of them expected another extension, but none will be granted, Pompeo said.

“We’re going to zero,” Pompeo said. “We're going to zero across the board. We will continue to enforce sanctions and monitor compliance. Any nation or entity interacting with Iran should do its diligence and err on the side of caution. The risks are simply not going to be worth the benefits.”

By Carol Morello