Indian decision comes amid pressure from the Trump administration, which had called on India and 7 other countries to stop the import of Iranian crude.
US Commerce Secretary Wilbur Ross, on a visit to New Delhi, said trade between the two countries is affected by a plethora of tariff and non-tariff barriers.
The Trump administration had informed Congress that it wants to scrap trade concessions for India, the largest beneficiary of the generalized system of preferences.
India’s industrial output growth saw a 10-month low in June, with Index of Industrial Production (IIP) growing by mere 1.5% as against 1.9% in May 2025.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
The complete halt to Iranian oil imports was expected. Though India has been assured of alternate sources, the loss will be felt due to favourable terms on Iranian oil imports. One presumes that India negotiated a deal with US over the operations of Chabahar port since there is no fallout yet over Chabahar. One believes that when the INSTEX payments system of the EU becomes operational, India could restart imports. Another key gamechanger would be the creation of buyers club. China’s representative had visited Delhi last month on this issue. Were a buyers group created, the entire oil scenario could drastically change with OPEC losing its stranglehold over oil. Hence, one hopes this disruption is transient.
It will not end with banning the export of Iranian oil. The United States is spoiling for war, no more justified than the invasion of Iraq. President Xi spoke to King Salman, who sometimes overrides his impetuous son’s hasty decisions. Trying to deal with the malaise at source. Perhaps India could speak to “ Friend Bibi “. The looming conflict would hurt India very deeply, starting with the disruption of the oil market, already near $80.
The complete halt to Iranian oil imports was expected. Though India has been assured of alternate sources, the loss will be felt due to favourable terms on Iranian oil imports. One presumes that India negotiated a deal with US over the operations of Chabahar port since there is no fallout yet over Chabahar. One believes that when the INSTEX payments system of the EU becomes operational, India could restart imports. Another key gamechanger would be the creation of buyers club. China’s representative had visited Delhi last month on this issue. Were a buyers group created, the entire oil scenario could drastically change with OPEC losing its stranglehold over oil. Hence, one hopes this disruption is transient.
It will not end with banning the export of Iranian oil. The United States is spoiling for war, no more justified than the invasion of Iraq. President Xi spoke to King Salman, who sometimes overrides his impetuous son’s hasty decisions. Trying to deal with the malaise at source. Perhaps India could speak to “ Friend Bibi “. The looming conflict would hurt India very deeply, starting with the disruption of the oil market, already near $80.