U.S. to Consider Iran Sanctions Relief on a ‘Case-by-Case’ Basis

Administration steps back from threats to insist on zero imports by a Nov. 4 deadline

A crew member works on the deck of the oil tanker ‘Devon’ as it prepares to transport crude oil from Kharq Island off the coast of Iran to India on March 23, 2018. Photo: Ali Mohammadi/Bloomberg News

WASHINGTON—The Trump administration will consider requests for waivers from economic sanctions against Iran on a “case-by-case” basis, a senior State Department official said Monday, a step back from threats to insist on zero imports by a Nov. 4 deadline.

Buyers of Iranian crude oil have been hoping for relief from U.S. sanctions in order to have more time to reduce purchases. Oil prices rose to multiyear highs last week after U.S. officials signaled the administration would act to cut Iran exports faster than expected and said all countries and companies that continued purchasing Iranian oil risked sanctions.

“We are prepared to work with countries that are reducing their imports on a case-by-case basis,” Brian Hook, the director of policy planning at the State Department, told reporters at a briefing, in response to a question about India’s and Turkey’s plans to continue to buy Iranian oil.

With the U.S out of the Iran nuclear agreement, the Trump administration is clamping down on the Iranian regime. The Wall Street Journal's Gerald F. Seib explains the sources of pressure. Photo: Reuters

Mr. Hook said that sanctions targeting Iran’s automotive sector and key metals exports will be reimposed on Aug. 6, while oil sanctions will follow on Nov. 4, as previously indicated by the administration. He reiterated previous statements that the U.S. aims to eventually cut Iran oil export revenue to zero.

Mr. Hook said the U.S. was working with countries in Europe and Asia to discuss the way forward. He said the closest consultations were being held with France, Germany and the U.K. He declined to say which countries or companies were being considered for waivers or had requested relief.

“We are working to minimize disruptions to the global market,” he said, adding that the U.S. believed there was sufficient spare capacity to replace Iranian crude and outages in other oil-producing countries like Venezuela.

The U.S. reinstated Iranian sanctions in May after withdrawing from the 2015 nuclear deal struck with Iran and five other world powers.

Write to Jessica Donati at Jessica.Donati@wsj.com