With Iran Sanctions Coming, Who Will Supply India with Much Needed Oil and Gas?

Headnote

The following is a summary of a more in-depth analysis by Noumaan Anwer of the Observer Research Foundation, which can be read in full at www.orfonline.org.

The restoration of U.S. sanctions on Iran doesn't stop at that nation's borders. The U.S. is set to impose sanctions on banks enabling the import of Iranian oil by third countries. Among the nations that will be majorly affected by these steps, is India.

About 80 percent of India's oil is shipped in from foreign countries and Iran is India's third biggest oil supplier, behind Saudi Arabia and Iraq. With the U.S. pushing India to nullify its trade with Iran, by November, 5 - the day the sanctions come into effect - the search for alternative sources of oil is on.

There are three possible approaches to ensure oil inflows from abroad are not seriously affected by the sanctions.

The first approach...