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News India Live, Digital Desk: Donald Trump’s tough decisions have created a stir in the global market as soon as he assumed power in America, the world’s most powerful country. The deepening nuclear dispute between Trump and Iran is now having a direct impact on the pockets of the common man of India. Experts believe that if Trump again imposes stringent economic sanctions on Iran, the supply of crude oil in the international market will be affected, which may lead to a huge rise in the prices of petrol and diesel in India.
‘Maximum pressure’ on Iran and the oil game
Donald Trump has been a strong critic of the nuclear deal with Iran from the beginning. In his new term, he may again adopt the strategy of ‘maximum pressure’. Iran is one of the largest oil producing countries in the world. If the Trump administration bans the export of Iranian oil, there will be a shortage of crude oil in the global market. Due to this imbalance of demand and supply, crude oil prices may cross $ 100 per barrel, the consequences of which will have to be borne by oil importing countries like India.
Why is this a ‘double blow’ for India?
India imports about 85% of its crude oil requirement from abroad. Whenever oil becomes expensive in the international market, India’s trade deficit increases and the rupee weakens. Increase in prices of petrol and diesel means freight transportation becoming expensive. Due to this, the prices of basic things like fruits, vegetables and grains also increase. This means that this political war between Trump and Iran can bring all-round inflation in India.
Will Modi government be able to find a middle path?
This situation is no less than a litmus test for India. On one hand there are strong strategic relations with America, on the other hand there is the challenge of meeting its energy needs. India had earlier also obtained exemption from America regarding Chabahar Port and oil import, but under Trump’s ‘America First’ policy, it will not be easy to get the exemption this time. Now the whole world is keeping an eye on whether Trump finds a solution through talks or whether this fire in oil prices will scorch the global economy.