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>> US sanctions on Iran's oil industry will be officially reimposed on Monday. But eight countries have been granted exemptions by the White House that allow them to continue to import Iranian oil. Sources suggest they include US allies Japan and South Korea, as well as China and India. Reuters' Dmitry Zhdannikov says it's because despite the harsh rhetoric, the White House faces certain political realities.
>> To begin with, this number of countries came as a bit of a surprise. People had been expecting two or three countries to get exemptions. What does it tell us? It tell us that the US administration is, of course, wary of the oil price impact. But there's another way of looking at this, because it really fits into the whole Trump US administration narrative.
You first try to scare the markets, then you do certain analysis, and then you soften the sanctions. This is what happened with the EU tariffs. This is what happened with Russian aluminum sanctions on Rusal. Probably the same will happen with Chinese trade spat and, for instance, the Mexican woe.
>> It's not clear how much Iranian oil the exempted countries will be allowed to import or for how long. Reuters sources say this was the result of internal debate within the Trump administration. It pit hardliners against officials afraid that an outright ban would cause too much collateral damage to other countries, including those US allies.
It may show in the market reaction.>> We have this week our annual global commodity summit, where we had the bosses, the CEOs of big trading houses. And they all said that the oil market will be softer next year because people are beginning to realize that the sanctions on Iran will not have such a deep impact as initially feared.
And in addition to that, the US oil output is reaching a new highs.>> This is only the latest round of sanctions to be reimposed after the US pulled out of the Iran nuclear agreement last May.