U.S. President Barack Obama has approved the introduction of new sanctions against Iran, saying there is sufficient oil in the world market to allow countries to cut Iranian crude imports, al Jazeera television reported.
Obama’s decision, required by a law he signed in December, allows the United States to punish countries that continue to buy oil from Iran.
In a statement on Friday, Obama said global economic conditions, increased production by some countries and “the existence of strategic reserves” meant U.S. allies boycotting Iranian crude would not be harmed by the sanctions.
Obama said he would “closely monitor” the global market to ensure it could accommodate a reduction in purchases of Iranian oil.
Iran has the world’s third-largest oil reserves.
The sanctions are aimed at pressuring Iran to abandon its disputed uranium enrichment program.
Western powers suspect Iran of seeking to create a nuclear bomb. Iran says the program is designed solely for the production of civilian energy.
Under the law, countries risk being cut off from the U.S. financial system if they fail to show by June 28 a significant reduction in the amount of Iranian crude imports.
Earlier this month, Washington gave exemptions from the santions to Japan and ten EU nations because they had already taken steps to cut back.
EU members states have earlier agreed to stop importing Iranian oil from July 1. The EU currently accounts for 20 percent of Iran’s oil exports.
Turkey said on Friday it would reduce Iran crude imports by 20 percent.
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