Sanctions imposed on Iran in early 2012 by the United States and European Union over its nuclear programme cut Iran's crude exports from a peak of 2.5 million barrels per day (bpd) before the sanctions to a little more than 1 million bpd.
Washington has given European firms doing business in Iran up to six months to wind up investments or risk U.S. sanctions and they are also forbidden from signing any new contracts with Iran.
Zanganeh said Iran's crude production was about four million barrels per day (bpd), nearly four percent of global output.
"They agreed on the need for calm on all sides and on the importance of tackling Iran's destabilising activity in the region". If the USA is going to be very inflexible with Iran's trade, we would be affected.
"The Prime Minister raised the potential impact of United States sanctions on those firms which are now conducting business in Iran". "We are closely monitoring the developments", External Affairs Ministry spokesperson Raveesh Kumar said.
"In any case we will make sure that we comply with the applicable global regulatory framework and, given our crude supply flexibility and diversification, we do not expect any significant effect on our operations".
"We believe the previous 1 million-bpd limit for exports (imposed during previous sanctions) will be reimposed".
While the events of yesterday have certainly caused this spike, oil prices have been steadily rising for the past three years following their collapse in 2014 as supply from Russia, Venezuela, the U.S. and other oil-producing nations increased. Brent is now trading at its highest price since late 2014. The United States is part of an agreement with other International Energy Agency countries to release strategic stocks, if needed, to offset supply disruptions, and the United States benefits from those collective actions regardless of how much oil it imports.
Total two-way trade between SA and the USA increased from R56.7 billion in 2001 to R141 billion in 2014.
"Europe and China will not fight against the U.S. sanctions". If we're forced to reduce, we will. Russia, China, Turkey and India will likely all oppose the sanctions and keep their current levels of Iranian crude purchases.
OPEC, however, is in no hurry to decide whether to pump more oil to make up for an expected drop in exports from Iran, four sources familiar with the issue said, saying any loss in supply would take time.
The foreign minister said the commitment of other partners to the Iran deal should be respected. "The key is banks". Another could be an independent financing mechanism allowing European companies to avoid US banks.
The French finance minister said he pushed U.S. Treasury Secretary Mnuchin this week for three things: exemptions for French companies operating in Iran; or the application of a so-called grandfather clause for deals struck in Iran since 2015; or an extension of the 90-day period to wind down operations in Iran.
"Waivers seem a sensible course of action", the third source said, referring to potential exemptions from the latest USA sanctions.