16.8.13

Iran seizes Indian Ship

Iran’s decision to detain oil-laden Indian ship MT Desh Shanti is being seen as a move to strike back at India following the cut in crude imports.
The cut in crude oil import from Iran has helped India—along with China and South Korea—win a waiver from the US, allowing it to continue to import crude from Iran.
In 2012, India is estimated to have imported crude from Iraq worth more than $15 billion. IOC is the largest importer of crude oil from Iraq. In October 2010, Iraq replaced Iran as the country with the third largest proven reserves of 143.1 billion barrels of oil.
For India, it is not far fetched to conclude that Tehran is peeved with its rising crude imports from Iraq and that the seizure of the ship may be a way of showing its displeasure. But this move will not just have consequences for India-Iran ties but also internationally as it will raise questions about what Tehran intends to do in the Persian Gulf where it has even threatened use of force to show its influence in the oil trade.
Iranian authorities are known to have threatened to block the crucial Strait of Hormuz oil trade route in the face of the sanctions imposed by western countries.

No comments: