U.S. Halts Imports of Oil From Iran

WASHINGTON--President Carter yesterday announced a halt to U.S. oil imports from Iran, declaring that this action would "eliminate any suggestion that economic pressures can weaken our stand on basic issues of principle."

The step was the first direct action taken so far in U.S. efforts to free the 60 American hostages Iranian students have held at the U.S. Embassy in Tehran for nine days.

Carter said in a nationally broadcast statement that protection of diplomatic personnel is vital to world security. The United States should "refuse to permit the use of terrorism and the seizure and the holding of hostages to impose political demands," he added.

Carter said he will forbid the purchase of "any oil from Iran for delivery to this country," and added that the move must be a part of an international effort to secure the release of the hostages.

Conservative

The president said he has asked the Department of Energy (DOE) to develop new conservation measures, and promised to strive for a fair and equitable distribution of short fuel supplies.

Tehran radio said later Ayatollah Khomeini's Revolutionary Council already had decided to cut off exports to the United States before Carter's announcement.

Carter's decision covers both oil bought directly from Iran and refined products bought from third countries. The DOE estimates total imports of Iranian oil are about 700,000 barrels a day from Iran itself and another 200,000 to 300,000 barrels of heavy fuel oil refined in the Bahamas and the Virgin Islands.

Imports of Iranian oil amount to about 7 per cent of all U.S. imports, or about 4 per cent of total American consumption.

DOE officials said yesterday they are uncertain how Carter's decision will affect American consumers. Gas prices and lines at gas stations depend on the success of conservation efforts, officials said.

The officials added that Americans can compensate for the cut-off in Iranian oil by reducing their average automobile travel by three miles daily. "With proper conservation there should be no cause for concern; there should be no cause for panic," officials said.

Static

No change was reported in the situation in Iran over the weekend. The Iranian students holding the Embassy are demanding the deposed Shah in exchange for the hostages.

A Palestinian Liberation Organization (PLO) source reported during the weekend that the PLO was negotiating with Iranian officials and student representatives. Salah Khalaf, a PLO leader, said yesterday the negotiators had given up and left Tehran.

Khalaf said the Palestinians had told Iranian authorities they "believe America cannot be fought through occupation of its embassy, but rather through serious and radical confrontation."

The PLO said it never had direct U.S. sanction for its efforts. Khalaf also denied that the PLO was using the Tehran crisis as a way of winning U.S. recognition.