What repercussions do the growing tensions between Iran and the US hold for India?
Iran and US are locked in an intensifying situation especially as the US has withdrawn its waivers it had granted to 8 countries including India to continue to buy Iranian oil till they are able to set terms with an alternate supplier.
- The decision by the US has put India in a tight spot as there is huge significance associated with the purchase of Iranian oil by India in terms of its economic interests and energy security.
- Iranian oil meets 10 percent of the energy needs of India as Iran is the third largest supplier of crude oil. This makes its replacement as the oil supplier both cumbersome and expensive.
- Iran has always supported India in the region and can serve as a highly useful ally even for the Afghanistan policy of India. India has made a significant investment in the development of the Chabahar port of Iran for the latter reason.
Thus, the latest situation in the Middle-East has put India in a tough position as it has to abide by the wishes of one of its friends to ruin the economy of the other.