The USA slapped sanctions on four Indian firms for allegedly permitting Iranian oil sales, which essentially helped Iran evade US-imposed curbs. With these sanctions, Washington continues its efforts to choke Iran’s oil exports and hinder its access to global financial structures.
Sanctioned Indian Firms and Allegations
As per the US Department of the Treasury, the sanctioned Indian firms were involved in processing and trading Iranian petroleum and petrochemical products, which have consequences for Iranian ability to oil trades while sanctions were imposed. Therefore, they have been placed on the list of those sanctioned by the US government that restricts their access to American financial systems and prohibits them from doing business with US entities.
US Policy on Oil Sector of Iran
For years, the United States has imposed strict sanctions on Iran’s energy sector due to fears over the nuclear program in Tehran and the growing regional footprints. Washington has continuously targeted companies and individuals around the globe who help Iran bypass the measures. The restrictions on Indian firms serve US purposes of cutting the trade network and oil revenues of Iran.
Impact on India-US Relations
India, which had earlier been a significant importer of Iranian oil, reduced the quantity of crude imports into the country due to earlier US sanctions. However, the new sanction on Indian companies could strain the so-far friendly relations between New Delhi and Washington. Such solidarity obviously has to do with increasing energy partnerships of India with other countries, but this development may bring the two governments to discussions about the issue.
Conclusion
The imposition of fresh sanctions indicates Washington’s unbending position with regard to imposing sanctions on Iran and third parties perpetuating oil trade with Iran. How these latest embargoes will affect the Indian business climate is yet to be seen, and whether or not it will also impact the wider ambit of India-US trade relations still remains to be seen.
