India side informed Iranian authorities that it has not taken any final decision on "complying" with the U.S. sanctions and would like to continue engagement with the Americans.
The second set of USA sanctions on Iran is scheduled to commence from November 4 and Washington has urged New Delhi and Beijing among others to reduce oil import to zero by then.
Iran has lodged a complaint at the International Court of Justice (ICJ) over the United States' "unlawful" move to re-impose "unilateral" sanctions against Tehran following President Donlad Trump's move to withdraw from the multilateral Iran nuclear deal. Further sanctions on oil and transactions with Iran's central bank will come into effect November 6.
"We have just received the answer, and it's negative", he said.
"We want people to reduce oil purchases to zero, but in certain cases if people can't do that overnight, we'll consider exceptions", Mnuchin told reporters on Friday, clarifying some U.S. officials' comments that there would be no exemptions.
Shipping to Iran and ports in the country are also coming under the U.S. sanctions.
In November the United States sanctions against Iran will cover the supply of Iranian oil.More news: Champion French hail their shy teammate, N'Golo Kante 07/16/2018
Last month, OPEC agreed to pump more oil to compensate for the loss of barrels from Iran.
Iran said Monday that if President Donald Trump wants to negotiate after pulling the United States out of the worldwide deal meant to prevent Tehran from developing nuclear weapons, he'll have to initiate the call. However, the Ayatollah regime said the US must stop what it calls "hostile" policies toward Iran. It is unclear whether Iran's latest case will be taken up by the judges in The Hague. The top USA diplomat said at the time that the U.S. wanted Iran to abandon its nuclear program, pull out of the Syrian war, and cut ties to terrorism.
Iran and the other signatories to the 2015 agreement have been scrambling to preserve the limited trade deals they were able to secure since it was signed.
He added: "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".
French Economy Minister Bruno Le Maire had already said the United States would not grant Europe its request. "We'll consider them appropriately".
The letter was a response to a 6 June request from France, Britain, Germany and the European Union sent to US President Donald Trump's administration. "I'm very confident they understand".
Pompeo has been a hardline voice on Tehran.
The Iranian deputy foreign minister conveyed to the Indian side that his country has been a reliable energy partner for New Delhi and it should remain so, sources said.