The US embargo on Iran oil shipments has put Prime Minister Narendra Modi in a quandary. If he plays along, India could find itself on the right side of President Donald Trump on trade but lose cheap supplies and precious foreign exchange.
US crude oil exports to India hit a record in June and so far this year are almost double last year’s total as the Asian nation’s refiners move to replace supplies from Iran and Venezuela in a win for the Trump administration.
Iran on Tuesday criticised India for not fulfilling its promise of making investments in expansion of the strategically located Chabahar port and said New Delhi will stand to lose ‘special privileges’ if it cuts import of Iranian oil.
South Korea will not lift any Iranian crude and condensate in July, halting all shipments for the first time in six years amid US pressure to cut all imports of Iranian oil from November, sources familiar with the matter said on Friday.
Among Iran’s largest oil buyers, China and Turkey have categorically refused to cut imports. However, India has been letting out mixed signals. Sputnik spoke to three of India’s top energy analysts and economists on New Delhi’s approach towards US sanctions on Iran.
What is it? Iran’s share in India’s crude import by volumes in 2017-18. Why is it important? India has asked refiners to prepare for a drastic reduction (or zero) in Iranian oil imports from November
Turkey will not heed the State Department’s call on US allies to stop importing Iranian crude oil by November 4, when the latest sanctions will kick in.
India appears to be bracing for life without Iranian oil and preparing Plan B after the US administration under President Donald Trump has declared zero tolerance against any country or entity that flouts its diktat to stop buying crude from Iran after November 4 + when the 180-day wind-down period ends.
The outlook on crude oil is getting murkier. The US wants India and other countries to stop importing oil from Iran by 4 November, as sanctions loom. India imports almost 80% of its oil requirements and Iran is its third-largest supplier. The country’s share in India’s import volumes was 10.4% in FY18.
India will from November not be able to use European banks for making payments for crude oil it buys from Iran as US sanctions against the Persian Gulf nation take effect, senior officials said today.