After protests, Iran's Khamenei demands punishment for those who harm economy

Japan imported an average of 165,481 barrels per day of Iranian oil in fiscal 2017-18

Japan imported an average of 165,481 barrels per day of Iranian oil in fiscal 2017-18

Indian government sources say the US' demands are "impractical" since there is a big difference between "significant reductions" and "zero" trade.

The state department official said he has met with European and Asian allies and will be returning to Europe this week. He also firmly added that that the U.S. will surely be requesting both the countries to bring down their export of oil with Iran to zero per cent. "We have enough foreign currency to inject into the market", Rouhani said in his speech.

However, a State Department official said on Tuesday that the sanctions were one of the administration's "top national security priorities".

"The US can not defeat our nation, our enemies are not able to get us to their knees", Rouhani said, adding that Washington was waging a "psychological, economic and political war" on Iran.

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"The government hasn't done enough to confront the economic problems", the conservative politician said, according to the semi-official ISNA news agency.

This time the situation may be different if USA officials' briefings are anything to go by. But the interpretation of the law appears to have become narrower and tougher. His administration said the oil sanctions would be going back into effect after a six-month grace period that expires Nov 4.

A senior State Department official warned foreign capitals that the USA will not be "granting waivers" under the new sanctions regime and described tightening the noose on Tehran as "one of our top national security priorities". "Without question." Given their huge energy requirements, India and China are major importers of Iranian oil.

Indian and USA officials are now meeting for talks in New Delhi to try to resolve a growing trade dispute triggered by the Trump administration's decision to hit Indian steel and aluminum exports with new tariffs.India has promised to retaliate with tariffs on 29 U.S. products, starting August 4. State Bank and other Indian banks with worldwide exposure have asked their clients to complete existing transactions and wind down by August.

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FILE - An oil refinery in Tehran, Iran.

He also urged "honest talks" between the two nations, which Ahmadinejad said would be of interest to both. The ensuing turmoil has seen global firms and oil companies back away from their own billion-dollar deals with Iran.

He predicted Iran might ultimately enter a fresh recession as lower oil revenues prompted the government to put public sector projects on hold and as the economy became more militarized in response to USA pressure. The US had earlier taken a more strategic approach with India, but its not clear whether the same will be on offer with the Trump administration despite the fact that India is inching up to become a close strategic and security partner.

"India's position has generally been that it will only enforce sanctions authorised by UN Security Council resolutions, rendering it likely that India will resist United States efforts to compel it to comply with reimposed U.S. sanctions such as those that mandate cuts in oil purchases from Iran", said the CRS report.

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