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Iran warns India of curtailing special privileges if oil imports reduced

11 July 2018

The official said Pompeo has made arrangements with the leaders of Saudi Arabia and the UAE to prevent market volatility after the U-S sanctions against Iran takes force on November 4th.

This is especially true because the United States never really had much justification for withdrawing from the nuclear deal in the first place, beyond President Trump personally having problems with it. Pompeo's primary ammunition in the talks will be assurances that other nations, mostly Saudi Arabia, will replace Iran's oil exports on the market.

"Sanction and financial threats have turned into opportunity for us, because they have led to self-reliance and strength of domestic capacities which can be a model for all other freethinking countries", Hatami remarked.

"So it's a broad range, a series of sanctions aimed not at the Iranian people, but rather aimed at the single mission of convincing the Iranian regime that its malign behavior is unacceptable and has a real high cost for them", he continued. Iranian President Hassan Rouhani inaugurated the first phase of the port project in December.

Iran has criticised India for not making investments in the expansion of the Chabahar port saying that New Delhi will lose "special privileges" if the import of Iranian oil is curtailed.

"That's the commitment we have had for decades", he said.

Referring to the relation between the two countries, Rahaghi said his country has been a reliable energy partner for India ensuring the interest of both consumers and suppliers.

Global oil benchmark Brent fell more than $2 a barrel on Wednesday after U.S. President Donald Trump threatened to levy new tariffs on China and Libya announced the reopening of key oil export terminals.

The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries in the wake of Pakistan denying transit access to New Delhi.

"... If India were to replace Iran with countries like Saudi Arabia, Russia, Iraq, the United States and others for the 10 per cent of its oil demand then it may have to revert to dollar-denominated imports which mean higher CAD (Current Account Deficit) and deprivation of all other privileges Iran has offered to India", Rahaghi said. He warned such imports largely would be "sanctionable activity and we will enforce those sanctions".

The government of India, Iran's top oil client after China, asked refiners last month to prepare for drastic reductions or even zero Iranian oil imports.

Pompeo met Abu Dhabi's powerful crown prince, Sheikh Mohammed bin Zayed Al Nahyan, and Foreign Minister Abdullah bin Zayed Al Nahyan while on his short trip to the UAE.

The defense chief also said that the USA has adopted the "tactic of causing distance between the people and the system" to harm the country after finding that it can not reach its objectives by imposing sanctions.

Iran warns India of curtailing special privileges if oil imports reduced