Iran buys US wheat despite nuclear tensions

(Reuters) - Iran has made a rare purchase of U.S. wheat as it tries to build its food stockpiles amid tougher sanctions imposed by the United States and Europe over its nuclear program, the U.S. government said on Thursday.

The U.S. Agriculture Department reported that Iran bought 120,000 tonnes of U.S. wheat -- enough to fill two large cargo ships.

Any sale of grain to Iran requires Treasury Department approval, said USDA spokeswoman Sally Klusaritz.

It was not immediately clear who made the sale or whether the Treasury Department approved the sale before it was announced by USDA earlier on Thursday. It was also not clear how the deal would be financed.

The hard red winter wheat was sold for delivery by May 31, USDA said. That variety of wheat for export from the U.S. Gulf Coast costs more than $300 per tonne, before freight costs to the Middle East add another $75 per tonne, according to Reuters and industry data. The wheat is worth at least $46 million and probably much more due to the risk premiums companies normally charge Iran.

The United States has imposed sanctions targeting Iran's oil trade and central bank payments to put pressure on Tehran to end its nuclear program.

The sanctions are squeezing Iran's oil exports even before they go into effect in June, a U.S. advisory body said in a report released on Wednesday.

Cargill, the U.S. agribusiness giant, said in early February that it was still shipping grain to Iran despite signs Iran was struggling to process payments.

By law, exporters must report promptly to USDA the sale of 100,000 tonnes or more of a commodity to the same destination in one day. Sales of smaller amounts are reported on a weekly basis.