The United States has announced that it will not extend the temporary relief granted to India to buy oil from Russia and Iran, which will impact several countries including India. US Treasury Secretary Scott McCalley stated in a press conference that the general license for Russian and Iranian oil has expired and will not be renewed, citing that the relief was only applicable to ships that set sail before March 11th. According to reports, the US had temporarily relaxed sanctions on Russian and Iranian oil to prevent a surge in oil prices, particularly when the Strait of Hormuz was congested due to tensions.
US President Donald Trump has stated that Iran’s conflict is causing rising oil prices in the global market and that the US will lift some sanctions on Russian oil to address the issue. Reports suggest that India was one of the countries that benefited the most from the relief, with Indian refineries ordering around 30 million barrels of Russian oil during this period. Additionally, ships carrying Iranian oil arrived in Indian ports after several years.
Prior to the US sanctions in 2019, Iran was one of India’s largest oil suppliers, accounting for 11.5% of India’s total oil imports. According to reports, the US decision is part of its “maximum pressure” policy on Iran. The United Nations has warned of a global food crisis due to the closure of the Strait of Hormuz, with Chief Economist for the Food and Agricultural Organization (FAO) Maximo Torero stating that time is running out.
The situation between Iran and the US has led to a new threat, with reports emerging that Iran may receive over 1,000 “kamikaze drones” from China, which could potentially be used to target the US or its allies. Experts have warned that the global energy crisis could worsen if Iran’s oil exports are blocked, with a US official stating that Europe has only six weeks of jet fuel left.
In a separate development, US Secretary of State Mike Pompeo stated that the US knows about Iran’s military assets being transferred, and warned that the US will not hesitate to take action if necessary. Additionally, US Secretary of Defense Mark Esper stated that the US has detected Iranian military assets being moved and will take action if necessary.
The situation between Iran and the US has also led to concerns about the safety of international shipping, with reports emerging that the US Navy will conduct increased patrols in the Gulf region.
