As a result of US’ sanction, India’s state-run oil corporation will be buying its crude oil supplies from Saudi and the United States.
The United States officially reimposed penalties in relation to the 2015 Iran Nuclear deal. Under this, countries aren’t supposed to sell any aircraft and repair parts, as well as void crude dealings with other nations.
This sanction is said to counter the terror regime happening in Iran that would lead to massive damages if the country gets access to aircraft parts.
According to US State Secretary Mike Pompeo, “I think there is a shared understanding of the threat and a common purpose to ensure to keep the energy at the right price and deter this threat.”
India was one of the eight countries allowed to keep buying oil from Iran but this permit already expired on May 2. The country is one of the leading crude buyers from Iran, which needed huge amounts of energy for its growing economy.
According to CNN, India will be sourcing its crude oil needs to other nations that produce massive barrels of oil. Saudi, among others, is one of the world’s leading supplier of energy and India is looking at partnering with Saudi’s biggest oil companies.
The India Ministry of Petroleum and Natural Gas spokesperson said that the country already cut oil dealings with Iran. It is said that this decision was collective and that government agreed on the matter. The spokesperson also added, “I’m sure it was in the interest of the country at the moment.”
Meanwhile, China is ignoring the US sanction to Iran and is buying more than $585 million worth of crude oil last May. Currently, China is engaged in a trade war with the United States, charging millions of tariffs from US products.
