Iran oil imports: Slippery road ahead for India as US sanctions kick in

Cutting imports may affect India's current account and fiscal deficits, as sweet-grade Brent crude makes up 28% of its import basket; continued dealings with Iran may invite US sanctions

Payment issues, insurance glitches, availability of alternative sources, uncertainty over oil block deal and a diplomatic jigsaw -- India is facing a familiar predicament. With the first set of US sanctions on import of Iranian oil set to kick off on August 6, India needs to be cautious.

Though New Delhi is in the process of negotiating a waiver with Washington, sources indicate that the Donald Trump administration wants a “significant” reduction in India's imports from Iran. With no guidelines from the government, importers like the Mangalore Refinery and Petrochemicals Ltd (MRPL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation