Iranian vice president Eshaq Jahangiri acknowledged on Tuesday that USA sanctions would hurt the economy but promised to "sell as much oil as we can" and protect its banking system.
"Iran has always been a reliable energy partner for India and others, seeking a balanced oil market and rational prices of oil which ensure the interests of both countries as consumer and supplier", the embassy said in a statement.
U.S. Secretary of State Mike Pompeo, speaks during, a joint press conference with Afghan President Ashraf Ghani, at the presidential palace in Kabul, Afghanistan, Monday, July 9, 2018.
India prefers to buy Iranian oil because of the proximity of that country's ports to refineries along India's western coast and also the 60 days of credit that Tehran allows for purchases.
The defense chief also said that the US has adopted the "tactic of causing distance between the people and the system" to harm the country after finding that it can not reach its objectives by imposing sanctions.
On Tuesday, Iran's deputy ambassador and charge d'affaires, Massoud Rezvanian Rahaghi, clearly announced that India will lose its "special privileges" if it cuts down on its import of Iranian oil or if it tries to replace the oil with imports from Saudi Arabia, Russia, Iraq, the United States and others.
The other signatories to the accord, which include Russia, China, the UK, France and Germany, however, have strongly objected to the US's withdrawal, and vowed to try to preserve the deal.
"Come November 4th, there will be a USA sanction that prevents crude oil from passing from Iran to other countries", said Mr Pompeo in an interview to Sky News Arabia when asked how Washington would deal with the countries that continued to buy oil from Iran after Nov 4.
Venezuelan crude shipments to the Asian country also fell 21 per cent in the first half of this year as production has been hampered by inadequate investment, mismanagement and USA sanctions.
"One that we are most focused on today is. that we deny Iran the financial capacity to continue this bad behavior", Pompeo told Sky News Arabia during a brief stop in the United Arab Emirates. Three others are headed for undisclosed ports on India's west coast from the US Gulf Coast.
Referring to the current customers of Iranian oil, to which the U.S.is calling upon to cut off crude oil imports from Iran, the state department official said that "we are very serious and determined about re-imposing our sanctions that were lifted under the Iran nuclear deal, and we are working very closely with nations to provide alternatives to the Iranian supply of oil".
But the National Iranian Oil Company (NIOC) reported this week that Iranian oil exports may decrease to 500,000 bpd when the sanctions kick in.
HPCL-Mittal Energy Ltd continued to skip Iran oil imports for a second month in June, the data showed.
Imports by state refiners during the period more than doubled to about 413,400 bpd from 191,700 bpd, the data showed.