Trump exits Iran nuclear deal: ‘No immediate impact on India’s oil imports’

Trump’s decision to pull US out of the Iran nuclear deal involving the UK, France, Germany, Russia, and China has left allies in dismay and Tehran looking at the other signatories for assurances

US President Donald Trump on Tuesday said that he would withdraw his country from the Iran nuclear deal. With the exception of Saudi Arabia, the decision immediately drew global frustration and outcry, including from Trump’s predecessor, Barack Obama. Announcing the US’ exit from the Iran deal in a televised speech from White House, Trump said that he would not sign the waiver of nuclear-related sanctions against Iran. Instead, he said, he would re-impose sanctions lifted under the multinational nuclear deal against Teheran and nations it had business links with. Meanwhile, experts said India’s oil imports from Iran would not be immediately impacted.

Reacting to the development, Iranian President Hassan Rouhani said he would discuss Trump’s decision with Europe, Russia, and China.

Trump said that the US will impose “the highest level” of economic sanctions on Tehran. “Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States,” he added. Subsequently, the White House said that Trump had directed his administration to “immediately begin the process of re-imposing sanctions” related to the Iran nuclear deal.

Trump’s pullout comes on the heels of visits to the US by French President Emmanuel Macron, German Chancellor Angela Merkel, and British Foreign Secretary Boris Johnson. As a last-ditch effort, Macron even proposed a side plan to appease Trump but had failed to convince him.

Iran, for its part, still hopes to salvage the deal. However, while Iranian President Rouhani has said that he will send his foreign minister to negotiate with countries remaining in the nuclear deal, he has also warned that if the deal falls apart after Trump’s decision, he will restart enriching uranium “in the next weeks”. Further, Rouhani on Monday sought assurance from parties involved in the 2015 deal, except the United States, to help Iran preserve its interests under the accord.

Meanwhile, away from the geopolitics, in the global commodities market, crude oil prices jumped back to near 3 1/2-year highs on Wednesday over Trump’s Iran nuclear deal decision, sparking worries about global oil supplies.

Here are the top questions, reactions and consequences of Trump’s decision to pull the US out of the Iran nuclear deal:

1) India’s oil import from Iran not to be immediately impacted by US sanctions, say experts: Trump’s decision to bring back financial sanctions against Iran as he pulls the US out of the Iran nuclear deal would not impact India’s oil imports from the Islamic Republic as long as European countries did not follow suit, officials told news agencies on Wednesday. India pays its third-largest oil supplier in euros using European banking channels and, unless these are blocked, imports would continue, they said.

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