US ends waivers for India to buy Iranian oil

White House Press Secretary Sarah Huckabee Sanders said that President Donald Trump has decided to end waiver given to India to buy Iranian oil. US has also threatened sanctions if it did not comply with the embargo.

New York:The US announced on Monday it is ending the waiver given to India to buy Iranian oil and has threatened sanctions if it did not comply with the embargo.

Announcing the end of the waivers, White House Press Secretary Sarah Huckabee Sanders said: "Trump has decided not to reissue Significant Reduction Exceptions (SREs) when they expire in early May. This decision is intended to bring Iran's oil exports to zero, denying the regime its principal source of revenue."

When the US imposed sanctions on Iran in November, India and seven other countries were given exemptions that will expire May 2.

US Secretary of State Mike Pompeo later told reporters that countries that do not abide by the embargo will face sanctions. They will encounter sanctions that will affect their international financial transactions, he said.

"We stand by our allies and partners as they transition away from Iranian crude to other alternatives," Pompeo added.

The US was increasing oil production and was working with Saudi Arabia and the United Arab Emirates to ensure that there will be no disruptions in oil supplies as a result of the ending of the waivers, according to Pompeo.

In May 2018, Trump withdrew from the 2015 international agreement with Iran on de-nuclearisation that had ended sanctions on that country.

In November, Trump re-imposed tough sanctions on Iran but gave India, China, Japan, South Korea, Taiwan, Turkey, Italy and Greece six-month temporary waivers to continue buying oil.

India was reportedly importing about 1.25 million tonnes of oil per month from Iran.