Skip to main content

Iran's outreach to India after US exit from nuclear deal faces obstacles

While Iran will likely receive political and trade support from the Indian government, Indian business with exposure to the United States will likely succumb to pressure from Washington.
Iran's Foreign Minister Mohammad Javad Zarif and his Indian counterpart Sushma Swaraj walk after a photo opportunity in New Delhi, India, May 28, 2018. REUTERS/Altaf Hussain - RC1293668F70

On May 28, Iranian Foreign Minister Mohammad Javad Zarif visited India as part of Tehran's broader engagement with world powers following the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA).

In Iran, the visit was viewed as a diplomatic success, particularly after India’s foreign minister said her country would not abide by US unilateral sanctions against Iran. However, things changed shortly after Zarif’s trip. On May 30, India’s Reliance Industries, owner of the world’s biggest refining complex and a main buyer of Iranian oil, announced that it would halt its oil imports from Iran in October or November. The announcement came one day after two Indian banks that are actively engaged in financial transactions with Iran announced they would wind up all deals with Tehran by Aug. 6. Thus, the question is whether Iran can remain optimistic about the future of energy exports and financial transactions with India.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.