On Monday, the U.S. has announced that all waivers on the sanctions imposed on Iranian oil will be eliminated from May 1.
Sanctions were initially imposed on Iranian crude oil. However, the sanction was waived for select countries. But, now the waiver has been canceled.
The eight countries include India, China, Turkey, Japan, Italy, South Korea, Taiwan, and Greece. They were able to purchase crude from Iran without paying penalties. Of these, China and India are the largest importers of crude oil.
But now, the waiver has been lifted. The waiver that was allowed last year on select countries was to expire on May 2. But these waivers have been lifted and will not continue, says President Trump.
China now opposes the recent announcement made by the Trump administration on the sanctions imposed. We have open and transparent trade with Iran on crude oil says Geng Shuang, the spokesperson for the foreign ministry of China. He calls it as a long-arm jurisdiction that has been imposed by the U.S. on Iran.
All the countries have rebuked the American President for the sanctions imposed. Apart from China, Turkey’s foreign minister Mevlut Cavusoglu has also shown his concern, for the attitude taken by the U.S. on removing the sanction waiver.
However, Mike Pompeo the U.S. Secretary of State has said that if countries continue to purchase Iranian crude, those countries will have to face the consequence.
After Iraq and Saudi Arabia, Iran is the next largest country to supply crude oil. Iran has not responded to the announcement made on the sanction waiver.
Meanwhile, U.S. crude prices have gone up by 3 percent on Monday. Brent crude has shot up by 3.4 percent. It has hit $74 per barrel, a level touched last, in November. It is expected that there will be a further surge in crude prices with the sanction waiver on Iran.