India-Iran Oil trade gets a new turn, the positive one as Indi one of the two top buyers have allowed the state refiners to go on with importing Iran oil with Tehran being responsible for the tankers and insurance. This decision from India comes months ahead of the Trump’s newest sanctions to be imposed on Iran from November onwards, which would eye to hamper Iran’s Oil industry to the greater extent.
Iran’s top oil importer China also seems not considering to halt the oil supply from the Islamic Republic of Iran, which means that Iran won’t swipe off globally even if the Western World would boycott the purchase of their oil. It should be noted here that days back the news of Iran shifting its ballistic Missile to Iraq made it to the headlines, and that led to some serious concerns among the Western World. If this news gets confirmed this can even extend more of the sanctions on Iran.
The tension between Iran and US sour after Trump administration withdrew from the 2015 nuclear deal with making economic curbs on Iran. With passing years, the other six world powers in the deal thought of ending the tensions amid US and Iran but that that effort went in vain.
Talking about the current scenarios of oil trade between India and Iran, it’s CIF (cost, insurance and freight) arrangement set between Delhi and Tehran, which makes Iran responsible for the tankers and insurance. The other thing which national Indian oil shippers could benefit through this arrangement is that Iran nearly offers free shipping and also gives extended credit period.