View: India has to navigate US’ Iran oil sanctions both economically and geopolitically

From Venezuela to Iran, on the supply side, and from France to India, on the demand side, the market for oil has once again been invaded by politicians and geopolitical strategists. While demanding of the world ‘fair trade’ practices, US President Donald Trump has resorted to the ultimate unfair trade practice of imposing unilateral sanctions on the oil exports of Venezuela and Iran. Trump’s oil sanctions are not just a hit on unfriendly exporters, but also on friendly importers — like India.

While the share of oil in India’s total energy consumption has been declining, with that of gas and renewables rising, the fact is that the share of imports in India’s oil consumption has steeply increased in the past two decades, now at over 80% of consumption.