TEHRAN – Following reports that the U.S. is planning to end the waivers on Iranian oil sanctions, a source with the Iranian oil ministry said Washington cannot drive Iranian oil exports to zero.

“Just as the U.S. couldn’t go through with the claims of zeroing Iran's oil exports on November 4, it can’t achieve its goal in the next 10 days, ten months or even next ten years.” the source told Tasnim news agency on Monday,

Earlier on Sunday, Washington Post reported that U.S. Secretary of State Mike Pompeo is going to announce that “as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate.”

Following that report, Reuters confirmed the news, citing a source familiar with the matter.

Asked about Iran’s possible actions in response to U.S. plans for tightening the grip on the country’s oil industry, the source noted that there is no need for any urgent actions.

“We do not need urgent action. We have been monitoring and analyzing all possible scenarios and conditions for the advance of our country's oil exports…. We are prepared for any situation and it is not like Iran is waiting for U.S. decisions to export its oil.” He said.

In May 2018, Donald Trump withdrew the U.S. from an international deal with Iran, formally known as the Joint Comprehensive Plan of Action (JCPOA), and in November the sanctions were reimposed on the country’s oil sector.

Trump then announced his plan for driving Iranian oil exports to zero, however shortly after the sanctions took effect, the U.S. government granted exemptions to eight countries, allowing them to temporarily continue buying Iranian oil.

The news comes at a time that the market is already at a tight state and various factors are already contributing to the supply-demand imbalance.

EF/MA