DUBAI/SINGAPORE, March 8 (Reuters) – Oil trading firms Trafigura and Vitol are stopping gasoline sales to Iran, industry sources said on Monday, joining a growing list of suppliers that have halted sales under threat of U.S. sanctions.
U.S. politicians are working on legislation to slap sanctions on suppliers of fuel to Iran to increase pressure on the Islamic Republic to halt uranium enrichment. Western powers accuse Tehran of using its atomic programme to develop weapons, while Iran says it needs nuclear electricity.
“The field of suppliers is narrowing, and Iran is getting squeezed,” a Middle East oil trader said.
The Financial Times reported on Monday that Trafigura and its rival Vitol had halted supply to Iran. Privately-owned Trafigura has its main offices in Amsterdam [ID.nLK595640]. Independent oil trader Vitol is based in Switzerland.
Vitol decided to stop participating in new tenders to supply Iran at the start of the year, the company said in a statement e-mailed to Reuters. It was completing existing spot supply deals that were made before the start of the year, it added.
Trafigura executives were unavailable for comment on whether they had made a similar decision to Vitol to honour existing supply deals.
Trafigura and Vitol will join international oil major BP (BP.L), Glencore and Reliance Industries (RELI.BO) among suppliers that have stopped selling fuel to Iran. The U.S. legislation would penalise firms that also … >>>