The Donald Trump administration said on Monday it would not renew waivers that let countries buy Iranian oil without facing US sanctions. The US had given waiver to five nations —India, China, South Korea, Turkey and Japan — till May 2.
In anticipation of the move, the price of Brent crude, the global oil benchmark, rose as much as 3.3 per cent, the highest intra-day level in almost six months. The Indian markets posted their worst single-day fall in 2019 and the rupee fell 32 paise to close at a two-week low. The benchmark Indian crude oil basket has already crossed $71 a barrel and is likely to jump further this week.
Though major Indian consumers said the country was ready for the situation, spiralling oil prices could create worries for the new government that will come to power next month, since its subsidy is expected to rise. It will also impact India’s wholesale price index (WPI) more than the consumer price index (CPI).
