India and China cannot rely on US oil as Iran troubles heat up


India and China cannot rely on US oil as Iran troubles heat up

The threat to the Asia’s vital oil supplies from the Middle East has escalated sharply since four oil tankers were sabotaged in the Gulf of Oman on May 13. A second attack on oil vessels in the region in June, the arrest of a British-flagged oil tanker by Iran’s revolutionary guards, and the U.S. and Iran shooting down each other’s surveillance drones in the area — these all point to a protracted problem that could become much worse before it gets better.

But as Asia’s biggest oil-consuming economies grapple with the twin challenges of this escalating hostility and losing access to Iranian crude under U.S. sanctions, their solution — seeking refuge in increased imports from the U.S. — is a risky strategy.

American oil is a welcome new option for diversification, but hardly a replacement for the fraught supplies from the Middle East in terms of quality, long-term security or cost of supply.

Leave a Reply

Your email address will not be published.