Iranian Foreign Minister Mohammad Javad Zarif tweeted on July 16 that Iran has filed a complaint with the International Court of Justice in The Hague against the renewed US sanctions.
But Mnuchin, who said he would be discussing the issue with G20 finance ministers this week in Buenos Aires, Argentina, signaled that there could be some wiggle room as countries gradually reduce their dependency on Iranian oil to avoid further volatility in the energy markets.
The Trump administration is pushing countries to cut all imports of Iranian oil from November when the U.S. reimposes sanctions against Tehran.
"The State Department has the ability to issue waivers around significant reductions in the oil markets, that's something that Treasury and State will be doing", Mnuchin said on Friday. Major Indian imports from Iran include petroleum and its products, inorganic/organic chemicals, fertilizers, plastic and articles, edible fruit and nuts, glass and glassware, natural or cultured pearls, precious or semiprecious stones, etc. Speaking to a small group of journalists after the meeting, Mr. Araghchi said he "had a very good sense" from his meeting that India and Iran will continue their cooperation despite the US threats.
The EU is scrambling to ensure Iran remains in the nuclear deal despite the USA withdrawal and declaration of economic war on the Islamic Republic.
The second person cited above pointed out that Iranian comments could be Tehran's way of pressuring India, given that all countries were looking to ensure the best deal for themselves before the first set of United States sanctions kicked in on 4 August. He did not name the country he had not yet consulted.
Zarif said the sanctions violate global law and accused Washington of showing "contempt for diplomacy and legal obligations".
The next step in Iran's new suit will be a hearing in which the United States is likely to contest whether it merits a provisional ruling.
The court could not be reached for comment.
The oil market was rattled by the latest sanction threat on Iran, a country producing 3.8 million barrels per day, or 3.9 percent of the world's supply. This is being done to cushion the market shocks which come into effect once the United States comes down at Iran with heavy sanctions.
Pompeo said the sanctions are aimed at depriving Iran of the funding it needs to "continue to foment terror and malign activity around the world".
Last week, US officials met with counterparts in Saudi Arabia to discuss the possibility of that nation increasing its oil output to fill the void that would be created if the Trump administration succeeds in weaning allies off Iranian oil.