US tells allies to end Iran oil imports by November

DURING THE previous round of sanctions, India was one of the few countries that continued to buy Iranian oil, although it had to reduce imports as shipping, insurance and banking channels were choked due to the European and US sanctions.

The US has told India and other countries to cut oil imports from Iran to ‘zero’ by November 4 or face sanctions, making it clear that there would be no waivers to anyone.

However, an Iranian oil official said, “Removing Iranian oil from the global market by November as called for by the US is impossible.”

Mr Trump withdrew the US from the Iran nuclear deal in May to pursue a maximum pressure campaign against Tehran’s atomic programme.

As the US piles up pressure on countries to cut oil imports, India said it will take all necessary steps including engagements with relevant stakeholders to ensure its energy security.

“India will take all necessary steps, including engagement with relevant stakeholders to ensure our energy security,” spokesperson in the ministry of external affairs Raveesh Kumar said.

Iran sends its largest oil volumes to China and India, where diverse and reliable energy supplies are critical components of economic growth and national security.

During the previous round of sanctions, India was one of the few countries that continued to buy Iranian oil, although it had to reduce imports as shipping, insurance and banking channels were choked due to the European and the US sanctions.

In India, the Centre has asked oil firms to start exploring alternative sources. Indian refiners have begun to voluntarily reduce Iranian imports.

Oil prices have been rising because of Trump’s dismantling of the Iran nuclear deal. The US too witnessed an increase in fuel prices. Mr Trump had tweeted rebuking producers for high oil prices.

Iran’s OPEC Governor, Hossein Kazempour Ardebili, responded saying, “You cannot place sanctions on two OPEC founder members and still blame OPEC for oil price volatility ..... this is business, Mr President—we thought you knew it.”

` breaches 69-mark

The rupee collapsed to a lifetime low of 69.10 against the US dollar by plunging 49 paise on Thursday as rising crude oil prices deepened concerns about the country’s current account deficit and inflation dynamics.

Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.

Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November.

Higher crude oil prices and a declining rupee are a double whammy for India, forex dealers said.