New Delhi: India may not be buying Iranian crude, but a prolonged disruption in Tehran’s oil exports following the latest US sanctions could still push up the crude import bill by making alternative supplies more expensive.
The immediate impact on India is expected to be limited because Indian refiners have largely stayed away from Iranian crude amid concerns over US sanctions. But the bigger risk is indirect: If China, which imports the majority of Iranian crude, is forced to other suppliers, it could compete with India for the same alternative supplies.“If China, which imports the vast majority of Iranian crude, is forced to source oil elsewhere, it will increase competition for the alternative barrels that India relies on. This demand reshuffling would likely push benchmark prices higher, resulting in a higher import bill for India,” Sumit Ritolia, manager for oil markets and refinery at Kpler, a trade data intelligence firm told ThePrint.
The US Treasury Monday announced sanctions against individuals, entities, and vessels linked to Iran and warned that countries and companies continuing to do business with Tehran could face secondary sanctions. The measures cover shipping, aviation, technology, gold, and digital assets, as well as financial and other activities linked to Iran’s trade.“We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” US Treasury Secretary Scott Bessent said in a post on X Monday.
