Iran will end special privileges to India: diplomat

Iran will end special privileges to India: diplomat

News

1. A senior Iranian diplomat says that Iran may end “special privilege” to India if India tried to replace Iranian crude with supplies from Saudi Arabia, Russia, and the United States.

Important Facts

2. S. administration of President Donald Trump asks India to drastically cut down crude supply from Iran.
3. Iran alleges that India’s response is lukewarm.
4. Although, India has not spelt out how it would address the concerns of the U.S. government.
5. The Ministry of External Affairs has maintained that Delhi would consult “all stakeholders” in ensuring energy security.
6. Massoud Rezvanian Rahaghi observes that if India were to replace Iran with countries like Saudi Arabia, Russia, Iraq, U.S. and others for 10% of its oil demand then it may have to revert to dollar-denominated imports

• This may also leads to higher CAD

7. He also hinted that Iran is not satisfied with India’s investment levels in the port of Chabahar.
8. Although, the official said Iran remains an open market for Indian requirements like petroleum, urea and LNG and Iran understands India’s energy requirement.
9. He also observe that Iran is essential for India’s quest to access the markets of the emerging economies in the Central Asian region
10. He also argued that unilateralism by the U.S. was imposing a heavy cost on the world.
11. He cautioned that a conflict in the Gulf region would “drive up” the price of crude oil and impact growing powers like India and China.