The move is the latest round of sanctions re-imposed since President Trump announced the US exit from the 2015 Iran nuclear deal.
Iran says the United States is seeking to wage an extensive "psychological war" against Tehran by imposing a fresh round of sanctions, stressing that the Islamic Republic has no concerns over such USA bids.
According to sources in the know, India is close to a deal with the United States that will allow it to continue buying crude oil from Iran without attracting any sanction after it agreed to cut imports and escrow payments.
With an over 30% reduction in imports of oil from Iran in the past few months, India is hoping to be eligible for a waiver on Iran oil sanctions from this weekend.
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The U.S. had called for all countries to "zero out" their oil purchases from Iran, which India has not done.
Just a few days before US sanctions on Iranian oil exports return on November 5, the keywords about how much of Iran's oil will come off the market are "lack of clarity". Under the Obama-era deal, involving five permanent members of the United Nations Security Council and Germany, Iran agreed to stop its nuclear programme in exchange of relief from economic sanctions.
President Donald Trump withdrew from the deal in May, describing it as "defective at its core". He has released a list of 12 demands that Iran must meet if it wants the sanctions lifted.
And in the United States, crude production is now well over 11 million bpd, putting the U.S.in a neck and neck race with Russian Federation for the title of top producer. I can't go. We're talking.
"It seems that the U.S. has no more capability to put countries and global economic enterprises under pressure", the Iranian spokesperson added.
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Pompeo said that he is convinced these sanctions are going to have an enormous impact on the Iranian leadership.
"They know the President's words, which are that if you choose to do business with Iran, that is your choice, but if you do you won't do business with America as well".
The Indian side, while building its case for a waiver, assured the USA that this payment mechanism ensures Iran can't use oil money from India for any terror-related activity, a key American concern.
With Saudi Arabia pumping 10.65 million bpd in October, combined output from the top-three oil producers is at a record 33.41 million bpd, meaning that Russian Federation, the United States and Saudi Arabia meet more than a third of the world's nearly 100 million bpd of consumption. Currently, Iran provides its tankers as well as insurance for oil cargoes to India. However, Essar-Nyara, sources said, has been buying some Iranian oil on the spot market.
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At least 18 people, majority children, have been killed after raging floodwaters swept away a school bus near the Dead Sea . Dozens more were missing, students and civilians whose bus was swept away by flash flooding as they were traveling there.