With deep sectarian Shia-Sunni divisions polarising countries in West Asia, US President Donald Trump’s bid to isolate Iran by imposing sanctions on Tehran’s export of oil and the emergence of the US as a major oil producer has changed the landscape of the oil industry in a manner that was unthinkable earlier.
At the India Energy Forum last year, Saudi foreign minister Khalid al-Falih praised PM Narendra Modi for making it easier to do business in the country and reassured New Delhi that Saudi Arabia was ‘committed to meet any shortfall that may arise due to sanctions on Iran.’ This was followed up by a meeting between PM Modi and Saudi Crown Prince Mohammed bin Salman on the sidelines of the G20 Summit in Buenos Aires. The result of such efforts is that the fall in Iranian oil exports to India has so far been successfully offset by an increase in Saudi oil exports.
