situation report

Oct 16, 2018 | 15:33 GMT

1 min read

India: Oil Company Expecting Waiver for U.S. Sanctions on Iranian Oil

What Happened: The managing director of India's Mangalore Refinery and Petrochemicals Ltd. told reporters he expects India to receive waivers for U.S. sanctions on Iranian oil imports, which take effect Nov. 5, Reuters reported Oct. 16. Both Mangalore and India's largest state-owned refiner, India Oil Corp., have placed orders for Iranian oil in November.

Why It Matters: India is the second-largest importer of Iranian oil, so Indian participation in U.S. sanctions on Iran will be key to ensuring they are as effective as the White House intends. Without Indian importers purchasing Iranian crude oil, Iran's oil exports could fall to less than 1 million barrels per day.

Background: Providing sanctions waivers would limit the impact of U.S. President Donald Trump's strategy to exert maximum pressure on Iran. However, asking India to completely cut off Iranian oil is a difficult proposition.

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