Tehran. America has temporarily lifted the stringent sanctions imposed on Iran’s oil sector. Iran has been given a relief of 60 days by the US Treasury Department. Under this, Iran will now be able to sell crude oil and petroleum products till August 21. The impact of this step of America will be visible on the global energy market as well as on India.
Why did Iran get this exemption?
On June 17, a Memorandum of Understanding (MoU) was signed between the US and Iran for 60 days. This 60 day grace period is part of the same agreement. Under this agreement, Iran has promised to allow free movement (free and open transit) without any restrictions in the Strait of Hormuz.
Apart from this, Iran will now also allow inspectors from the International Atomic Energy Agency (IAEA) to visit its country. US Vice President JD Vance has described the talks held in Switzerland as ‘good progress’ and termed it a major achievement.
To which countries will Iran be able to sell oil?
After this decision, Iran can sell its oil and petroleum products to almost every country in the world. However, Iran will not be able to sell oil to North Korea, Cuba and Crimea facing US sanctions. An important thing in this deal is that oil can be paid to Iran in US dollars.
Will America also import oil from Iran?
The US has never imported Iranian oil since the 1979 Islamic Revolution. But, according to the new general license issued by US Treasury Secretary Scott Besant, Iranian oil can also be imported into the US if necessary to complete the process of selling, delivering or offloading the oil.
What is the meaning of this decision for India?
Before the US imposed sanctions on Iran in 2019, India was a major buyer of Iranian oil. Apart from India, South Korea, Japan, Greece, Taiwan, Italy and Türkiye were also big buyers.
If we look at the figures of 2009, Iran had 14 percent share in India’s total crude oil imports and was India’s second largest supplier. But in 2019, when tough sanctions were again imposed on Iran during Donald Trump’s presidency, New Delhi completely stopped buying oil from Tehran. Given the current shortage and instability in oil supply across the world, India is expected to benefit greatly from America’s 60-day relaxation.
Let us tell you that at present India is buying oil from Russia at a record level. According to market analytics firm Kpler, in the month of June alone, India has imported 26 lakh barrels of oil per day from Russia, which is about 54 percent of India’s total crude oil imports in the same period.
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