President Donald Trump announced on Tuesday that the US will withdraw from the nuclear deal with Iran and reinstate economic sanctions against Tehran. “We will be instituting at the highest level of economic sanction; any country that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States,” Trump said on Tuesday.
The move has repercussions for the entire global economy – including India.
For one, it would make it harder for Iran to sell its oil to other countries, or to use the international banking system. This will also hit India where it hurts the most.
Iran is currently back to being the third-largest supplier of crude oil to India, which had scaled down its purchases from the country when sanctions were in effect between 2006 and 2015. In 2013, for instance, India’s government data showed that Iran had slipped to the seventh position in the list of crude oil suppliers.