Indian Government has said that it will stop importing crude oil from Iran following the US decision to end sanctions waivers.
The shortfall in crude oil supply will be made from alternate sources available in Saudi Arabia,Kuwait,UAE and Mexico.
India is the world’s third-largest consumer of oil with 85% of its crude oil and 34% of its natural gas requirements being fulfilled by imports. Further,India was the second biggest buyer of Iranian crude oil after China.
Recently,the United States had announced that all buyers of Iranian oil will have to end their imports by May 2,2019 or face sanctions.
The US had announced this decision to put maximum economic pressure on Iran and through sanctions it eventually aims to halt Iranian oil exports and thereby choke its main source of revenue.