Iran threat shakes oil market, trump gives temporary relief to countries on russian oil purchases
Rising tensions in West Asia and Iran’s warning over energy facilities have shaken the global oil market
New Delhi (The Uttam Hindu): West Asia is currently witnessing a period of serious tension. The intense military confrontation continuing for the past two weeks has raised global concerns about energy security. The situation became more alarming after Iran warned that if its energy facilities were attacked, it could target oil and gas infrastructure across the entire region. Following this warning, volatility increased in the global oil market and fears of supply disruption deepened.
Amid the growing crisis, the United States has suddenly changed its stance and decided to grant temporary permission to some countries to purchase Russian oil. In a notice issued by the US Treasury Department, it was stated that transactions related to Russian crude oil and petroleum products loaded on ships at or before 12:01 a.m. on March 12 will be allowed. This order will remain effective until April 11.
The decision comes at a time when tensions across West Asia have reached a peak over the past 14 days. Attacks by the United States and Israel on Iran, followed by Iran’s retaliatory strikes targeting Israel and US military bases in Gulf countries, have escalated the conflict. The rising confrontation has also impacted the global oil market, with international oil prices witnessing an upward trend.
The US Treasury Department said the move was taken to maintain stability in the global energy market and control the surge in oil prices. It also indicated that the ongoing conflict between the United States and Iran is unlikely to end soon, which has further increased concerns regarding oil supply.
It is noteworthy that the United States had earlier granted a similar exemption to India. On March 5, the US provided India with a special 30-day permission allowing it to purchase oil from Russia. The Trump administration had stated that the decision was aimed at maintaining oil supply in the international market and easing pressure on prices.