Still, Iran vowed on Sunday to defeat U.S. efforts to block its oil exports and warned rival producer Saudi Arabia it would never take Tehran's "place" on the worldwide oil market.
President TrumpDonald John TrumpScaramucci warns Trump must "change tactics now" on trade Trump sought to purchase historic Scottish building for hotel: report Republican wins right to replace Farenthold in Congress MORE said Sunday that the us will "absolutely" sanction European companies that do business with Iran.
At the same time, the official said, the United States would work with countries that import Iranian crude on a "case by case" basis, signaling that the Trump administration might not immediately impose sanctions on those that continue importing from Iran beyond a November 4 deadline. He also said he and senior Treasury Department would visit Gulf states "in the coming days".
The US "down to zero" plan rests heavily on banning India and China from buying from the Iranians, and while Indian companies have suggested they will dial it back, China remains in the nuclear deal and nearly certainly won't give in to US demands.
"We're not granting waivers", the official said.
The move lower is attributable to Saudi Arabia's willingness to increase demand at the request of US President Donald Trump.
"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction (sic) in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference..." "Prices to high! He has agreed!"More news: Amazon Prime Day 2018 Kicks Off July 16, Deals Already Happening
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Jahangiri said it was not that "simple".
Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46. The Saudi leader said he was ready to raise output if needed, the White House said in a statement.
Prices retreated as some thought talk of supply disruptions might be overblown, said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
"It has no meaning for Iranian oil not to be exported, while the region's oil is exported".
After reducing production by more than 1.8 million barrels daily since January a year ago to drain a global glut, the producers decided in Vienna on June 23 to reverse course.
The letter calls on the president of OPEC to "remind" member states to "adhere to their commitments. and refrain from any unilateral measures undermining the unity and independence" of OPEC.