An Indian oil tanker seized by Iran in August for allegedly polluting Gulf waters has been allowed to leave the port where it was held, an Iranian official said on Thursday.
India should look at other alternatives and should stop buying oil from Iran, he insisted.
Iran`s oil production has dropped by 40 per cent, a State Department official has said.
A top US energy diplomat was misquoted in suggesting that he was "not too impressed" with India`s efforts to cut its imports of oil from Iran.
The CPI-M on Tuesday took strong exception to the government`s decision to cut crude oil import from Iran.
The US has not threatened to impose sanctions on India for having economic relations with Iran; External Affairs Minister SM Krishna said.
India`s decision to continue
importing Iranian oil is a slap on the US` face which is galvanising the world to isolate Tehran, says Nicholas Burns.
EU has imposed further sanctions against Iran`s oil exports and the central bank to ramp up pressure over its nuclear program.
EU countries have agreed in principle to embargo imports of Iranian as part of the latest efforts to step up heat on Tehran.
The embargo will force Tehran to find other buyers for oil. EU countries buy about 450,000 barrels per day from Iran.
Iran has repeatedly denied the programme has any military dimensions to it.
The United States, Britain and Canada on Monday announced new sanctions on Iran`s energy and financial sectors.
Day in Pics: 18th September
Showbiz World - September 18, 2014
Aamir Khan's sensational 'PK' posters