US to extend sanction relief to India for significantly reducing oil imports from Iran

The Obama administration will be extending six-month sanctions exemptions to India and eight other countries for significantly reducing oil imports from Iran, officials have said.

This comes as the US imposed new measures against companies believed to be acting as a front network to help the Iranian government evade international financial restrictions, reports Fox News.

Banks in Malaysia, Singapore, South Africa, South Korea, Sri Lanka, Turkey and Taiwan also will be exempted from any US penalties.

The Obama administration has introduced a series of new measures over the past week to step up the pressure on Iran over its nuclear program, which Washington suspects is aimed at making weapons but Iran insists is for generating electricity and medical research.

Washington hopes the pressure will force Iran to come clean on its nuclear activity so that the US and its allies don't have to engage in any military intervention to prevent the Islamic republic from obtaining an atomic arsenal.

Washington's most ambitious tactic has involved pressuring countries around the world to cut commercial ties with Tehran or likewise face a series of restrictions on what type of business they can conduct in the US, the world's largest market.

China remains Iran's top trading partner and its No. 1 client for petroleum exports, with Japan, India and South Korea among the other top purchasers.

One US official stressed that Chinese imports showed an honest decrease, especially when crude oil is accounted for in calculations.

Despite plummeting sales overseas, Iran remains one of the world's largest oil producers. Its exports bring in tens of billions of dollars in revenue for the country's hardline leaders, money the US is trying to cut off.