China, India, South Korea, Japan and Turkey - all top importers of Iranian oil - are among eight countries expected to be given temporary exemptions from the sanctions to ensure crude oil prices are not destabilised.
"Sanctions waivers being given to key purchasers of Iranian oil, most alarmingly China, give Iran a financial reprieve, and should be eliminated as soon as possible", Rubio said in a press release on Friday. In addition, it also shipped oil to India for a nominal 20 per cent of normal ocean freight. The incident made Iran an worldwide pariah and caused a diplomatic schism between the two countries that has remained to this day. This could continue even in FY19.
The countries will deposit Iran's revenue in an escrow account and the funds will be used for humanitarian purposes, according to U.S. officials.
While Iran braces for a new set of sanctions on Monday that will target its oil, shipping, energy and banking sectors, USA measures have already taken a heavy toll on the Islamic republic.
According to The Guardian however, "inside Iran. people are on tenterhooks". "This new U.S. president. has disgraced the remnant of America's prestige and that of liberal democracy".
US officials said the jurisdictions that had been given waivers would be identified on November 5, although they have not yet been disclosed.
The Treasury designation against Parsian Bank was based on it providing financial services to the Andisheh Mehvaran Investment Company, which it found was "owned or controlled" by Iran's Zinc Mines Development Company, which it said could eventually be linked back to Iran's Basij paramilitary force.
Part of the explanation lies in the ambiguous position of the USA, which initially insisted that the sanctions were created to reduce Iranian exports to zero barrels, but has since has softened its position. Thus terms of contracts would become important, they add.
More than 700 individuals, entities, vessels and aircraft were now on the sanctions list.. But New Delhi is keen to continue buying oil from its traditional ally. This time, Iran will take the entire amount in rupees.
World oil markets were on alert, nervously set to gauge the consequences of the sanctions. Experts say Trump believes the last deal was the worst ever struck by the US. Also, the earlier practice of routing money for oil through UCO Bank and IDBI Bank may be explored.
China said on Monday its lawful trade cooperation with Iran should be respected and expressed regret that the United States re-imposed sanctions on the Middle Eastern country. The reinstated sanctions follow the Trump administration's decision in May to pull out of the global nuclear deal.
"SWIFT (will) be subject to United States sanctions if it provides financial messaging services to certain designated Iranian financial institutions". He also noted that some have claimed that the Trump administration has "caved".
Pompeo maintained that despite the waivers, "these sanctions have already had an enormous impact". But he said the eight unidentified nations "need a little bit more time to get to zero".