Faced with pressure over compliance of U.S. sanctions against Tehran, India has stopped buying Iranian oil – a move that may have diminishing strategic returns for New Delhi.
The United States had given a six-month waiver to several countries including India to continue to buy Iranian oil but that immunity ended on May 2.
The Trump Administration re-imposed sanctions against Iran after renouncing the Obama-era nuclear deal reached with Iran over its nuclear program.
In Washington, India’s Ambassador Harsh Vardhan Shringla confirmed New Delhi’s halting buying of Iran’s oil.
“We do understand that this has been a priority for the US administration, although it comes at a cost to us because we really need to find alternative sources of energy,” Mr Shringla said at a news conference in Washington on Thursday
New Delhi’s purchase of Iranian oil has dropped sharply from about 2.5 billion tons a month to 1 million tons a month, according to the diplomat
Meanwhile, Iranian Foreign Minister Javad Zarif during a visit to Islamabad offered Pakistan to link Chabahar with Gwadar.
Islamabad had resented India getting a foothold on its western border and accused India of trying to encircle it as well as sponsoring militancy in Balochistan.
Iran is also thankful to Pakistan for speaking out against the idea of U.S.-Iran war and urging a political course. Pakistan has close ties with Saudi Arabia, Iran’s major key competitor and rival.
Ambassador Shringla said India remains hopeful that the U.S. sanctions would not affect its partnership with Iran on developing Chabahar port – just 100 kms away from Pakistan’s Chinese-built Gwadar deep seaport.
Shringla argued that Chabahar port is a lifeline for Afghanistan, and added that the port provides both humanitarian assistance and supplies to Afghanistan.
It’s unclear what course will India adopt with regard to Iranian oil.
But Tehran will certainly pay a heavy economic cost as American sanctions blunt its international trade.
