TEHRAN – Iran is selling oil and gas at a discount to Asian customers asit prepares for the return of US sanctions, state news agency IRNA reportedon Monday.

The “informed source” in Iran s oil ministry did not give details of thediscount, but sought to downplay the move as common industry practice.

“Discount is part of the nature of the global markets being offered by alloil exporters,” the source told IRNA.

Bloomberg reported on Friday that the state-run National Iranian OilCompany was reducing official prices for September sales to Asia to theirlowest level in 14 years, compared with Saudi crude.

The United States will seek to block Iran s international oil sales fromNovember 5, when the second phase of sanctions are reimposed as part ofWashington s withdrawal from the 2015 nuclear deal.

Several key buyers, including China and India, who account for roughly halfof Iran s sales, have said they are not willing to make significant cuts totheir energy purchases from Iran.

But analysts predict Iran could still see its oil sales drop by around700,000 barrels per day from their current level of around 2.3 million.

Much will depend on the European Union, which has vowed to resist USsanctions on Iran, but whose companies and financial institutions are morevulnerable to US financial pressure than their Asian counterparts.

French energy giant Total has already said it is pulling out of itsmulti-billion-dollar investment project in the South Pars oil field insouthern Iran as a result of the renewed sanctions. – APP/AFP