By Admin 
- America canceled Iran’s license after the Hormuz attacks.
- India lost the opportunity to buy crude oil from Iran.
- Old oil deals with Iran will have to be completed by 2026.
Iranian Crude Oil Supply: America had given a special license (Sanctions Waiver) to Iran to sell its oil, which has now been cancelled. Last month in June, the American Treasury Department had issued General License X for Iran. Under this, Iran was allowed to sell its oil legally in the world for the next 60 days till August 21.
Meanwhile, after the attack on commercial oil tankers in the Strait of Hormuz and America’s retaliatory action last night, a new order has been issued to cancel the license. This means that now no new deal or loading will be possible for the purchase of oil from Iran.
India had a plan to buy oil from Iran
According to media reports, before the US announced the decision to cancel the license, Indian government refinery companies were in talks with traders marketing Iranian crude oil. India wanted that if America extends the exemption given to Iran for selling oil for some time or relaxes the restrictions, then they can move forward to buy oil. At present, this immediate purchase was not possible because in an attempt to secure supplies during the tension in the Middle East, Indian refineries had already signed contracts for the necessary shipments till August.
Now what next?
After the re-imposed ban on Iran’s crude oil, the US Treasury Department has now given time to the companies till July 17, 2026. Meanwhile, companies have been asked to complete ongoing deals and financial transactions with Iranian refineries. After this date, there will be no loading of crude oil from any port of Iran. India had got an opportunity to start importing crude oil from Iran, but it has now been lost.
However, the fortunate thing is that Indian refineries had just started negotiations for the purchase of oil from Iran, relying on the American exemption, and had not made any major payment or deal. If this had happened, India would have suffered huge losses.
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