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Iran scrambles to address energy sanctions

TEHRAN, Sept. 10 (UPI) -- Tehran is considering extending restrictions on fuel consumption in order to deal with sanctions targeting its energy sector, an official said.

Iranian Oil Minister Masoud Mir Kazemi said earlier this week that petroleum production had reached 17.5 million gallons for the year, meaning his country was able to halt imports.

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Under plans to curb consumption, meanwhile, Tehran is expected to consider whether to extend fuel rations on private drivers, the Financial Time reports.

Iran holds some of the largest oil and gas deposits in the world, though poor refining capacity means the country had relied on imports to meet around 30 percent of domestic demand.

Western oil traders said the increase in domestic production may be a short-term fix. Iran has a low-quality crude that produces little petroleum.

The United States and the European Union each imposed their own sanctions on Iran in July that target the energy sector.

International oil companies announced they stopped selling petroleum to Iran ahead of the announcement of the U.S. sanctions.

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