London: Iran is trying to skirt US and European sanctions by luring nations to buy its oil on highly advantageous credit terms, say officials in the industry.
Tehran has been offering a handful of potential customers in Asia, including India, 180 days of free credit, according to the officials. They estimate that each month of credit amounts to a discount of roughly $1.2 to $1.5 a barrel.
But Gulf-based officials and European traders said Tehran was struggling to find new customers despite its generous credit terms. Nations in the European Union, as well as Turkey, Japan, South Korea and China, have all announced hefty cuts in their purchases of Iranian oil.
Iran's marketing offer is the latest sign that its oil industry is struggling under the impact of the sanctions. Its move comes before crucial talks between Tehran and western countries to discuss the Islamic republic's nuclear programme.
The US and Europe have imposed sanctions on Tehran's crude oil exports amid concerns that it is trying to develop a nuclear bomb. Iran insists its nuclear work is for peaceful civilian purposes to generate electricity.