India's Relationship With The U.S. Is Putting Its Iranian Oil Imports In Jeopardy

iran oil fire pipeline

India’s relationship with the U.S. may be growing, but so are the problems associated with that tightening.

India imports 16% of its oil from Iran, and now many of its biggest oil companies are having a problem paying for the product, according to the Times of India.

What’s happening is that the Reserve Bank of India, which previously handled payments between Iran and India in dollar, tried to switch to euros around the time of Barack Obama’s visit. Now that’s a mess too, and they’re thinking about setting up a direct exchange system. But the U.S. isn’t exactly in support of that either.

So while the U.S. is trying to slow capital flowing into Iran to put pressure on the regime, it may start hurting friends like India where it counts: the key fuel for its growth.

Read the full story at The Times of India >

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