Iran-Us War: Concession on Russia-Iran oil ended, what will India do now? America gave a big blow

Iran-Us War: middle east The whole world is suffering the consequences of war. There is a worldwide crisis in oil and gas supply. Meanwhile, America has now taken a decision which is going to impact many countries including India. America has announced not to extend the temporary sanctions waiver on Russian and Iranian crude oil.

This decision could be a big blow to countries like India, which have been largely dependent on cheap Russian oil in recent months. This policy change of America can have a deep impact on global oil trade, prices and strategic partnerships.

Why was this decision taken?

US Treasury Secretary Scott Besant clarified in a press briefing that Washington will not extend the waiver that expires this week. He said, ‘We will not renew the general license on Russian oil and we will not renew the general license on Iranian oil either. This was the oil which was in the sea before March 11. Now all that oil has been used.

What will be the impact on India?

India has been a big beneficiary of this relaxation. After getting American permission, Indian refineries had purchased large quantities of crude oil from Russia. According to reports, India had ordered about 30 million barrels of Russian oil. Now after the end of the exemption, it may be difficult for India to buy cheap Russian oil, due to which the country’s energy cost is likely to increase. India may now have to look for alternative sources or face expensive oil imports.

Why was this exemption given?

America had given this temporary exemption at a time when global oil supply was under threat due to tension in the Strait of Hormuz and conflict related to Iran. The aim of this step was to maintain stability in the energy market and prevent price surges. Under this arrangement implemented in March, Iran was allowed to sell about 140 million barrels of oil loaded before March 20.

On March 12, the US Treasury Department had issued a special exemption of 30 days, so that countries like India can buy oil from Russia. Its purpose was to keep the global energy market balanced amid increasing tension in the Middle East. Describing India as an “essential partner”, America had expressed hope that it would increase American oil imports. This step was taken by Iran to balance the pressure on global energy supply.

When did the war start?

This entire incident has come to light at a time when tension between Iran and America is at its peak. The situation worsened after the attack on Iran by America and Israel on 28 February. At present, a temporary ceasefire of 15 days is in force between the two sides, but the situation still remains sensitive.