The United States on Monday officially announced that it is granting a temporary waiver to India and seven other nations on Iran sanctions. (Image: Reuters)

The United States on Monday officially announced that it is granting a temporary waiver to India and seven other nations on Iran sanctions, Reuters reported. The Donald Trump administration agreed to grant India the waiver after the country agreed to cut imports and escrow payments from Iran.

News agency PTI had reported recently that India told the US that it was willing to restrict monthly oil purchase from Iran from 22.6 million tonnes (452,000 barrels per day) to 1.25 million tonnes or 15 million tonnes in a year.

US Secretary of State Mike Pompeo on Monday said that oil waivers have been granted to China, India, South Korea, Turkey, Italy, Greece, Japan and Taiwan. The Iran sanctions re-imposed by the Donald Trump administration fully kicked-in even for oil and banking services from Monday.

Earlier the US had warned India on media reports that New Delhi was mulling trading with the Persian Gulf country in the rupee. However, India pressed for the energy needs of its 1.3 billion people and persuaded Washington by agreeing to cut imports in upcoming months, PTI reported.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu said that Iran sanctions will reduce Tehran’s “aggression” in the region. Pompeo said that over 20 countries have cut their oil imports from Iran, reducing purchases by more than one million barrels per day.

India is the world’s third-biggest crude oil consumer and 80% of its energy demand is covered from oil imports, while Iran is the third largest supplier of oil to the country, following Iraq and Saudi Arabia.

Recently, India oil companies placed an additional 4 million barrel oil order with Saudi Arabia to cover for fall in oil imports from Iran.