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India's temporary reprieve to buy Iranian oil to end shortly
Why is it in the news?
- India’s temporary reprieve along with seven other countries to buy Iranian oil is expected to end shortly, with US slated to terminate the conditional waiver.
- Washington Post foreign policy and national security columnist Josh Rogin wrote that the United States is preparing to announce that all buyers of Iranian oil will have to end their imports shortly.
- Also the rupee fell sharply by 47 paise to 69.82 against the US dollar in early trade Monday as a result of a rise in crude oil prices.
More in the news
- The US had granted exemptions to China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey ‘to ensure a well-supplied oil market’ in November last year for six months after it reimposed sanctions on Iran.
- Indian strategic planners have been worried over short-term supply disruptions, given that the country’s energy needs are primarily met through imports.
- Brent crude futures, the global oil benchmark, was trading higher by 2.53 per cent at USD 73.79 per barrel.
- Removing the sanctions exemptions would reduce oil supply from a market that is already tight because of US sanctions against Iran and fellow OPEC-member Venezuela.
- India will need to come up with options that offer terms as attractive as those offered by Iran.
- Iran had become a preferred supplier for India, making it the second largest Iranian crude oil purchaser of Iranian oil after China.
Source
Live Mint.