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As soon as US sanctions are lifted, India would attempt to begin purchasing crude oil from Iran, diversifying its import base, according to a senior government official. 

Following the Trump administration's sanctions against the Persian Gulf country, India halted purchasing oil from Iran in the middle of 2019. 

The US and other leaders around the world are gathering in Vienna to resurrect the Iran nuclear agreement.

The Statement made by the officials 

A government official claimed that once the sanctions are repealed, we may try to resume oil supplies from Iran.

He claimed that once the prohibitions were withdrawn, Indian refiners could promptly engage in contracts given that they had already initiated their preparations. 

According to the official, when Iran is permitted to export oil, we already have a blueprint for economic circumstances and we can very rapidly engage into contracts.

Reasons India Will Think About It

When Iranian oil enters the market, prices will drop and India's import portfolio will be significantly diversified. Iraq, Saudi Arabia, and the United Arab Emirates were India's top three oil suppliers in 2020–21. The US was the fourth-largest producer, followed by Nigeria on the list.

As stated by the official, "We have been urging oil producers to pump in additional oil by eliminating output limitations." The weak economic recovery, notably in India, is threatened by rising oil costs, based on the announcement. When prices were within a certain acceptable range, he claimed, India did not approve of such output increases.

When oil was consistently surpassing the USD 63-64 $ mark, he continued, "we raised our worries." We want costs that are affordable for consumers and acceptable for manufacturers. Over 85% of India's oil requirements are imported; the country was formerly Iran's second-largest consumer.

A longer credit cycle and reduced freight costs owing to shorter voyages are only two major advantages Iranian crude would provide. Following Donald Trump's tightening of sanctions in 2018 and the abolition of several nations' exemptions in 2019, especially in India, Iranian exports declined dramatically. This week marked the start of the most considerable effort yet by Iran and the major international powers to revive the nuclear agreement.

Reasons why Iran has been blacklisted 

Following Trump's withdrawal from the agreement and the reintroduction of the sanctions against Iran, the country resumed its unlawful nuclear program.

Despite the fact that Joe Biden, the very next US president, intends to return, both sides insist that the other party must engage in conversation first. 

Before sanctions suspended imports in May 2019, India was Iran's second-largest oil customer behind China. In 2017–18, Iran, after Saudi Arabia and Iraq, was its third-largest supplier and produced 10% of its requirements.

Iranian crude oil exports to India were second only to Saudi Arabia in terms of quantity up until 2010–2011, but sanctions imposed by the West over Iran's alleged nuclear program dropped it to the seventh position in the following years. India purchased 11 million tonnes in 2013-14 and 10.95 million tonnes in 2014–15, correspondingly.

Iran moved up to sixth place in 2015–16 with 12.7 million tonnes of imports. The Iranian supply surged to 27.2 million tonnes the following year, which drove it to third place and strengthened its ranking. For refiners, Iranian oil is a lucrative purchase since the country in the Persian Gulf enables 60 days of credit for purchases, which are parameters not offered by manufacturers of alternative crudes, including Saudi Arabia, Kuwait, Iraq, Nigeria, and the US.