Iran begins oil sales on energy exchange in bid to counter US sanctions

Iran sold oil to private buyers through its energy exchange for the first time on Sunday as part of its efforts to counter the imminent return of US sanctions.

Only 280,000 barrels were sold out of one million offered, and they went for $74.85 per barrel, more than $4 below the initial asking price, AFP said.

The identity of the buyer remained a secret, with the conservative Fars news agency saying only that a conglomerate of private firms had made the purchase through three brokerages.

The US is set to reimpose sanctions on Iran's oil industry on 4 November, following President Donald Trump's decision to walk out of the 2015 nuclear deal in May. Companies that buy Iranian crude after sanctions take effect may be cut off from the US financial system.

The oil ministry's news website SHANA said Sunday's crude sales were carried out in increments of 35,000 barrels, according to the Business Standard’s website.

Buyers will pay 20 percent of the total value of their purchases in Iran’s national currency, the rial, with the remaining payments made in foreign currencies after loading, PressTV said.

The plan to sell oil to private companies on the energy exchange was floated in July by First Vice-President Eshaq Jahangiri with the aim of "defeating America's efforts ... to stop Iran's oil exports."

The government hopes selling to private buyers, rather than direct to foreign clients, will make it harder for the US to monitor and stop its sales.