Allowing private companies to export crude oil is the step initiated by Iran which has taken an oath to oppose US efforts to block its oil exports.
Rival OPEC producer Saudi Arabia was also warned by Eshaq Jahangiri, Iran’s first vice president as Saudi would never take Tehran’s “place” on the international oil market.
Jahangiri said in a speech during an economic event broadcast on state television that “We will surely do something to thwart the US rallying cry that Iranian oil [exports] must be stemmed.”
Jahangiri added, “The Iranian government has a plan … and God willing we are certain that we will be able to sell as much oil as we want.”
If by November 4, Iran is looking at ways to keep exporting oil after US President Donald Trump’s administration threatened to impose sanctions on Iran‘s business partners if they do not cut Iranian oil imports to “zero”. In an attempt to further isolate Tehran politically and economically.
On Thursday, India, the biggest buyer of Iranian oil after China, already asked refiners to prepare for a “drastic reduction or zero” of Iranian oil imports in order to protect its exposure to the US financial system.
Jahangiri said at the event, “Iranian crude oil will be offered on the bourse and the private sector can export it in a transparent way.”
“We want to defeat America’s efforts … to stop Iran’s oil exports.
“Oil is already being offered on the bourse, about 60,000 barrels per day, but that has been only for exports of oil products,” Jahangiri said.
Following Trump’s withdrawal from the 2015 nuclear deal agreed between Iran and six major powers, the US-led sanctions are aimed at pressuring Iran to negotiate a follow-up agreement to halt its nuclear programme.
On Tuesday a senior State Department official described tightening the noose on Tehran as “one of our top national security priorities”.
The official confirmed that Trump intends to stick to his deadline as European countries have been attempting to negotiate exemptions for their firms.
“We’re not granting waivers,” the official said.
Jahangiri’s remarks come a day after Trump said that Saudi Arabia’s King Salman had agreed to his request to ramp up oil production, “maybe up to 2,000,000 barrels” to offset anticipated losses in production by Iran and Venezuela.
Jahangiri said it was not that “simple”.
“They’re begging the Saudis to raise their output so that if Iran’s quota decreases nothing will happen to the markets,” said Jahangiri.
“In this battle, any country that tries to take Iran’s place on the oil market will be guilty of treason against Iran… and surely one day it will pay the price of this treason,” he said.
While Saudi Arabia is the world’s biggest oil exporter, Iran possesses the second-largest gas reserves on the planet after Russia and the fourth-largest oil supplies.
Also read: US urge India to stop oil imports from Iran by November