The United States is preparing to reimpose sanctions on Iran's oil industry on November 5 after withdrawing from Tehran's nuclear deal with world powers.
Iran says the United States is seeking to wage an extensive "psychological war" against Tehran by imposing a fresh round of sanctions, stressing that the Islamic Republic has no concerns over such U.S. bids.
The U.S. government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, keep buying Iranian oil after it re-imposes sanctions on Tehran next week, Bloomberg cited a U.S. official as saying.
The spokesperson of the Ministry of External Affairs said India has been in talks with the U.S.as well as with Iran to ensure uninterrupted energy supply.
"Oil prices sold off sharply. on news that the US administration would grant waivers for oil imports from Iran", Goldman Sachs analysts said in a note to clients.
The US has told various countries, including India, to cut oil imports from the Persian Gulf nation to "zero" by November 6 or face sanctions.
India on Thursday said it was engaged with the US, Iran and other stakeholders on the issue of American sanctions on import of Iranian oil, amid indications that the Trump administration may grant New Delhi waiver from punitive measures.
That's symbolically important to the Trump administration because President Barack Obama's administration took three years to remove 1.2 million barrels from the market - and that was while acting in concert with the European Union and other nations before the global effort yielded the 2015 deal.
The sanctions bring back the punitive measures that were imposed and then lifted by former president Barack Obama who reached an worldwide agreement under which Iran moved to end its nuclear program. "I think it's important that we not relax in the effort", he said.
The administration has said it is considering waivers on a case-by-case basis.
Federica Mogherini believes that despite the new rollout of sanctions, trade between Europe and Iran will continue in defiance of Mr. Trump.
While European powers believe the deal has been successful and have sought to preserve trade with Iran, most major companies have chosen to exit the country rather than incur the wrath of USA authorities.
"It's a virtual certainty that Western banks are not going to violate the escrow restrictions", said Mark Dubowitz, the chief executive of the Washington-based Foundation for Defense of Democracies who has advised Pompeo.
The restrictions come six months after President Donald Trump fulfilled a campaign promise and ended an Obama-era nuclear agreement with the Middle East state.
Rouhani urged Parliament to approve four new ministers and help his government "resist" and "fight" the U.S.as it reinstates sanctions against the Islamic Republic. During the summer, however, Iranian oil sales to India averaged much higher, topping out at a record 768,000 bpd during July. Iran used the funds to buy goods from India. However, Essar-Nyara, sources said, has been buying some Iranian oil on the spot market.