Another Wrench by Trump to India, American Ban on Buying Oil from Iran after May 2

US President Donald Trump has decided not to give any discount to any country on the import of crude oil from Iran. The biggest impact of this decision by the US is to fall on India and China. However, the Indian government is studying the effects of the US decision to stop the import of oil from Iran.
Another Wrench by Trump to India, American Ban on Buying Oil from Iran after May 2

US President Donald Trump has decided not to give any relief or discount to any country on the import of crude oil from Iran. The biggest impact of this decision by the US is to fall on India and China. However, the Indian government is studying the effects of the US decision to stop the import of oil from Iran.

After the White House announced a ban on other countries including India, which imports oil from Iran after May 2, the US has been banned. Prior to this, the news in the Washington post was told not to give extra discounts.

The United States engaged in isolation of Iran

With the announcement of US Secretary of State Mike Pompey, it is now clear that the country which will not completely stop importing oil from Iran, will have to bear the US restrictions. Earlier, US State Department officials told the Washington Post on Sunday that the US would not give any rebate to import oil from Iran after May 2.

US decision impacts India-China

In fact, in November last year, the US had given 180 days to 8 countries to explore alternate options for oil import from Iran, which is being met on May 2. Three of these eight countries, Greece, Italy, and Taiwan have already reduced oil imports from Iran to zero. The other five countries include India, China, Turkey, Japan and South Korea, which will now have to either shut the oil imports from Iran or face US sanctions.

Ultimatum till May 2

Significantly, China and India currently imports the largest oil from Iran. Now that these two countries also continue importing oil from Iran against the judgment of Donald Trump since May 2 then strained their bilateral relations with the US, and can have an impact on other issues such as trade is. Although India hoped that the US would give some more time for Iran to import oil from Iran.

Let us explain you that, South Korea and Japan are less dependent on oil imports from Iran and they have already searched their way. The United States clearly states that the policy of importing zero oil from Iran has been made by Foreign Minister Pompoe. Because Donald Trump wants the Iranian government to come back to the negotiating table and make a better deal with the agreement with former President Barack Obama.

Impact on the Indian stock market

The exchange rate of rupee fell 32 paise to close at 69.67 a dollar on Monday, after the news of US decision to end the exemption from oil imports from Iran.

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