Prepared to work with nations that are reducing oil imports from Iran

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President TrumpDonald John TrumpScaramucci warns Trump must "change tactics now" on trade Trump sought to purchase historic Scottish building for hotel: report Republican wins right to replace Farenthold in Congress MORE said Sunday that the USA will "absolutely" sanction European companies that do business with Iran.

"We will surely do something to thwart the U.S. rallying cry that Iranian oil must be stemmed", First Vice President Eshagh Jahangiri said in statements broadcast on state television.

The U.S. wants to cut Iran's oil export, but everyone, with even a limited knowledge of worldwide affairs, knows that such thing is impossible, the official added.

At the same time, the official said, the United States would work with countries that import Iranian crude on a "case by case" basis, signaling that the Trump administration might not immediately impose sanctions on those that continue importing from Iran beyond a November 4 deadline.

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The spike was the latest fallout from the Trump administration's decision to abandon the landmark Iran nuclear deal and reimpose sanctions on Iran - a move that has strained relations between the United States and other world powers that support the deal.

Now, Washington is stepping up pressure on all countries, including India and China, to completely stop buying oil from Iran by November 4.

For now, "simple reality dictates that U.S. secondary sanctions will have a strong impact", Mr Singh said, because "the choice between the USA and Iranian markets is an easy one for most businesses".

"We are not looking to grant licenses or waivers, because doing so would substantially reduce pressure on Iran, and this is a campaign of imposing pressure", Brian Hook, Director of Policy Planning at the State Department told reporters at a news conference.

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Trump, who is spending the weekend at his golf property in New Jersey, said in a tweet on Saturday that Saudi Arabia's King Salman bin Abdulaziz Al Saud had agreed to produce more oil.

Last week, some White House officials privately expressed displeasure with the State Department remarks because they were at odds with another Trump administration priority - stopping oil prices from rising too high ahead of the midterm elections.

Looming U.S. sanctions against Iran further contribute to expected tightness.

"There seems to be great uncertainty about how much oil will be added to the supply side of the market", said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut, referring to how much Saudi Arabia's spare capacity will be able to offset shortages around the world. The official spoke on the condition of anonymity under State Department ground rules.

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