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Turkey's biggest oil importer Tüpraş has cut back purchases of Iranian crude since May, when the United States said it would re-impose sanctions on Tehran, and analysts say Tüpraş is likely to stick to lower volumes in coming months.
In the first four months of 2018, Tüpraş, Turkey's largest refiner, bought an average of 187,196 barrels per day of Iranian oil, data from Turkey's energy watchdog EPDK showed.
In April alone, Tüpraş imported eight cargoes - equivalent to just over 240,000 bpd - from the OPEC member.
But since May, when President Donald Trump announced the re-imposition of U.S. sanctions on Tehran after pulling out of a 2015 nuclear deal, Tüpraş's purchases of Iranian oil have gone down.
Iran said on Monday U.S. Secretary of State Mike Pompeo's speech against Iran's clerical rulers was an interference in its affairs, the semi-official Tasnim news agency reported."The U.S. secretary of state’s hypocritical and absurd speech in the gathering was only a propaganda exercise and showed the unlimited desperation of the U.S. administration more than ever,” Iranian Foreign Ministry spokesman Bahram Qasemi said.“These remarks are a clear example of the country’s (the U.S.’s) interference in Iran's internal affairs and exactly in line with its long-term destabilizing and destructive policies in the region, which are in violation of its international obligations,” he added.Pompeo on Sunday denounced Iran's leaders as a "mafia" and promised unspecified backing for Iranians unhappy with their government.Iran will resist Trump's 'psychological warfare,' says senior Guards commander“Throughout history, Iranians have never accepted any foreigner’s domination and bullying policies, and certainly, in these sensitive conditions, they not only give no importance to the policies of the current president and the warmongering minority of the US…, but also will respond to such statements and meddlesome moves by the US officials and politicians with their exemplary solidarity,” Qasemi further emphasized.Pompeo, in a California speech to a largely Iranian-American audience, dismissed Iranian President Hassan Rouhani and Foreign Minister Javad Zarif, who negotiated a nuclear deal with the United States and five other countries, as "merely polished front men for the ayatollahs' international con artistry."U.S. President Donald Trump withdrew in May from the 2015 nuclear accord designed to stop Iran from developing nuclear weapons.Iran "is run by something that resembles the mafia more than a government," Pompeo said, citing what he called Iranian leaders' vast wealth and corruption.Trump warns Iran to 'never, ever threaten' US or suffer consequencesPompeo's speech was the latest step in a communications offensive launched by the Trump administration that is meant to foment unrest in Iran and help pressure its government to end its nuclear program and support of militant groups, U.S. officials familiar with the matter said.The offensive is meant to work in concert with severe economic sanctions that Washington plans to reimpose in the coming months, including on Tehran's oil exports, its principal revenue generator.The United States will work with countries that import Iranian oil "to get imports as close to zero as possible" by Nov. 4, Pompeo said.Rouhani cautioned Trump on Sunday about pursuing hostile policies against Tehran, saying: "War with Iran is the mother of all wars." But he did not rule out peace between the two countries.Southern Iran rattled by earthquake; 79 hurt"You are not in a position to incite the Iranian nation against Iran's security and interests," Rouhani said, in an apparent reference to reports of efforts by Washington to destabilize Iran's Islamic government.Publicly, the Trump administration says its policy with Iran is not "regime change," but to change Tehran's behavior so it stops nuclear and missile work, support for proxies in the Middle East and backing of militant groups."While it is ultimately up to the Iranian people to determine the direction of their country, the United States ... will support the long-ignored voice of the Iranian people," Pompeo said.
Iran slams Pompeo's 'mafia' remark as 'hypocritical, absurd'
Tehran shipped four cargoes of crude oil per month to Tüpraş, equivalent to around 130,000 bpd, in May and June, tanker tracking and shipping data showed, down from six to eight earlier in the year.
So far in July, Tupras has bought three more cargoes.
The United States is due to re-instate sanctions on Iran's energy sector after a wind-down period ends on Nov. 4.
An industry source said the U.S. decision was the main reason for the decline in Tüpraş's purchases of Iranian oil since May, but said the company was likely to continue importing some Iranian crude, as it did when U.S. sanctions were previously in force.
Overnight threats by President Donald Trump against Iran amount to "psychological warfare", and Tehran will continue to resist its enemies, a senior commander of Iran's elite Revolutionary Guards was quoted as saying on Monday."We will never abandon our revolutionary beliefs ... we will resist pressure from enemies... America wants nothing less than (to) destroy Iran ... (but) Trump cannot do a damn thing against Iran," Iranian Students News Agency ISNA reported Gholamhossein Gheybparvar as saying.Iranian President Hassan Rouhani said on Sunday that Trump's hostile policies toward Tehran could lead to "the mother of all wars", according to a report by state new agency IRNA.Trump warns Iran to 'never, ever threaten' US or suffer consequencesTrump reacted in a late Sunday night Twitter message written in capitals, telling Rouhani to "never, ever threaten the United States again" or face the consequences.U.S. officials familiar with the matter told Reuters that an ongoing communications offensive by the Trump administration was meant to work in conjunction with a sanctions push to foment unrest and help pressure Iran to end its nuclear program and its support of militant groups. 
Iran will resist Trump's 'psychological warfare,' says senior Guards commander
"During the sanctions scheme of 2011 by the U.S., Tüpraş was able to purchase 3 to 4 cargoes of Iranian crude a month," the industry source said.
"I believe they would want to be able to stick to that this time as well instead of completely stopping. This crude needs to be bought by someone as otherwise it will send the price shooting up, which nobody wants," he said.
Refiners in other countries are affected by the sanctions because they want to maintain their access to the U.S. financial system. Indian refiners also cut imports of Iranian oil last month to avoid looming U.S. sanctions.
SANCTIONS WAIVERS
Trump initially planned to totally shut Iran out of global oil markets, demanding all other countries stop buying its crude by November.
U.S. President Donald Trump told Iran it risked dire consequences "the like of which few throughout history have suffered before" if the Islamic Republic made more threats against the United States.His words, spelled out in capital letters in a late night Twitter message, came hours after Iranian President Hassan Rouhani told Trump that hostile policies toward Tehran could lead to "the mother of all wars."Despite the heightened rhetoric, both sides have reasons to want to avoid starting a conflict that could easily escalate.Trump's comments come in the context of a barrage of speeches and online communications meant to foment unrest and pressure Iran to end its nuclear program and its support of militant groups, according to U.S. officials.Iran has faced increased U.S. pressure and possible sanctions since Trump's decision in May to withdraw the United States from a 2015 international agreement over Iran's nuclear program.In his message directed at Rouhani, Trump wrote: "Never, ever threaten the United States again or you will suffer consequences the likes of which few throughout history have ever suffered before. We are no longer a country that will stand for your demented words of violence & death. Be cautious!".Earlier on Sunday, Rouhani had told a gathering of Iranian diplomats: "Mr Trump, don't play with the lion's tail, this would only lead to regret.""America should know that peace with Iran is the mother of all peace, and war with Iran is the mother of all wars," said Rouhani, quoted by the state news agency IRNA.Rouhani left open the possibility of peace between the two countries, at odds since the 1979 Islamic Revolution. But Iran's most powerful authority Supreme Leader Ayatollah Ali Khamenei said on Saturday negotiations with the United States would be an "obvious mistake".To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!— Donald J. Trump (@realDonaldTrump) 23 Temmuz 2018 Rouhani also scoffed at Trump's threat to halt Iranian oil exports and said Iran has a dominant position in the Gulf and the Strait of Hormuz, a major oil shipping waterway.A senior commander of Iran's elite Revolutionary Guards reacted angrily to Trump's threats by saying Tehran would continue to resist its enemies, Iran's Students news Agency ISNA reported."We will never abandon our revolutionary beliefs ... we will resist pressure from enemies ... America wants nothing less than (to) destroy Iran ... (but) Trump cannot do a damn thing against Iran," Brigadier General Gholamhossein Gheybparvar said.White House national security adviser John Bolton, who has in the past called for air strikes on Iran's nuclear facilities, said :"President Trump told me that if Iran does anything at all to the negative, they will pay a price like few countries have ever paid before", according to a White House statement.Iran slams Pompeo's 'mafia' remark as 'hypocritical, absurd'Trump says he 'gave up nothing' at Putin meetingWar of WordsTrump's threat to Iran came hours after a speech by U.S. Secretary of State Mike Pompeo who denounced Iran's clerical leadership as a "mafia" and promised unspecified backing for Iranians unhappy with their government.Tehran reacted to Pompeo's speech as an interference in Tehran's affairs, the semi-official Tasnim news agency reported."Such policies will unite Iranians who will overcome plots against their country," Iranian Foreign Ministry spokesman Bahram Qasemi said.Israeli Prime Minister Benjamin Netanyahu, who is bitterly opposed to Iran, praised Trump's "strong stance" on Tehran.At the same time, Germany said threats of war were "never helpful".There is limited appetite in Washington for a conflict with Iran, not least because of the difficulties the U.S. military faced in Iraq after its 2003 invasion but also because of the impact on the global economy if conflict raised oil prices.Many ordinary Iranians are worried that the war of words might lead to a military confrontation but insiders in Tehran told Reuters that the U.S. administration would not drag the country into another quagmire in the Middle East.With popular discontent over Iran’s faltering economy and sliding currency, and the prospect of tough new U.S. sanctions, Iran's leaders have called for unity.Iran will resist Trump's 'psychological warfare,' says senior Guards commanderMany ordinary Iranians are largely skeptical of the Trump administration's support for Iranian citizens because of the harsh U.S. sanctions on the country and a visa ban imposed on Iranians barring them from entering the United States.While Washington prepares to reimpose economic sanctions on Tehran after pulling out of the nuclear deal, Iran's faction-ridden religious and political elites have closed ranks against Trump's hawkish approach to Tehran.However, growing strains with the U.S. will eventually boost Rouhani's anti-Western hardline rivals who fear losing power if the nuclear deal, championed by Rouhani, ended the country’s political and economic isolation.Rouhani's apparent threat earlier this month to disrupt oil shipments from neighboring countries came in reaction to efforts by Washington to force all countries to stop buying Iranian oil.Washington initially planned to shut Iran out of global oil markets completely after Trump abandoned the deal that limited Iran's nuclear ambitions, demanding all other countries stop buying Iranian crude by November.But the United States has somewhat eased its stance, saying it may grant sanction waivers to some allies that are particularly reliant on Iranian supplies. 
Trump warns Iran to 'never, ever threaten' US or suffer consequences
The United States later said it may grant sanction waivers to some allies that are particularly reliant on Iranian supplies.
Most analysts still think the sanctions will significantly reduce Iran's crude oil exports, with some forecasting as much as a two-thirds drop to 700,000 barrels per day (bpd).
Turkey has criticised the U.S. decision, saying Ankara will not cut trade ties with Iran at the behest of other countries.
After meeting a U.S. delegation in Ankara on Friday, the Turkish foreign ministry said authorities were working to avoid the U.S. sanctions from harming Turkey.
In the past, whenever Turkey has needed to cut back on Iranian oil, Iraqi crude emerged as the alternative. Analysts say that is again likely to be the case in the coming months.
"Iran and Iraq have traditionally been Turkey's two biggest crude oil suppliers," Cuneyt Kazokoglu, head of oil demand at consulting firm FGE, said. "It won't be a surprise to see more Basra barrels flowing to Turkey," he said.
In the first four months of the year, Turkey imported an average of 39,768 bpd of Iraqi oil.
In the whole of 2017, Iraq was Turkey's third biggest supplier of crude after Iran and Russia, with 7 million tonnes of oil, equivalent to around 141,000 bpd.