US President Barack Obama has approved the introduction of fresh sanctions on buyers of Iranian oil.
In a statement, Mr Obama said US allies boycotting Iranian oil would not suffer negative consequences because there was enough oil in the world market.
The move would allow the US to take measures against foreign banks that still deal with Iranian oil.
Iran is facing international pressure to address concerns over its nuclear enrichment programme.
Western countries suspect Iran of attempting to develop a nuclear weapon. Iran insists the programme is purely peaceful.
Mr Obama said in a statement that he would continue to monitor the global market closely to ensure it could handle a reduction of oil purchases from Iran.
The US president was required by a law he signed in December to determine by 31 March whether the market allowed countries to “significantly” cut their purchases from Iran.
‘On notice’
A statement from the White House acknowledged that “a series of production disruptions in South Sudan, Syria, Yemen, Nigeria and the North Sea have removed oil from the market” in the first months of 2012.
“Nonetheless, there currently appears to be sufficient supply of non-Iranian oil to permit foreign countries to significantly reduce their import of Iranian oil,” the statement says.
“In fact, many purchasers of Iranian crude oil have already reduced their purchases or announced they are in productive discussions with alternative suppliers.”
Under the law signed in December, countries have until 28 June to show they have significantly reduced the amount of crude oil they purchase from Iran or face being cut off from the US financial system
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