US Sanctions Pause on Iran, Russia Oil to Ease Crude Market: Experts

Sachdev, while talking to ANI on Saturday, said that it is the cold market logic which America is using.

He said, "It is, of course, very interesting to see that America is saying that sanctions on Iran will be suspended for 30 days for the Iranian oil which is at sea. Now, what this means is that there are many ships which are carrying Iranian crude which are heading to some destination, or many ships which are being used only for storage; these ships are not moving much. So there's probably around 150 million barrels of oil in these Iranian-origin ships. If that comes into the market, definitely yes, it will help soften the crude oil market."

"So that's simply the cold market logic which America is using. It has also given a waiver, as we very well know, for 30 days for Russian oil that is at sea. Even the Russian oil, which is at sea, means again Russian shadow fleets which are carrying crude oil. Either they're heading for some destination, or once again they're just sitting in the sea somewhere at water waiting for the next direction and they're actually acting like storage tanks," he added.

On the United States temporarily lifting sanctions on Iranian crude oil and petroleum products, Defence expert Dhruv Katoch said that, regardless, India will suffer very severe shortages in the immediate future.

He said, "Now, today is the 22nd day of the war, and the United States has finally allowed Iranian crude to be shipped. That means they have removed Iranian crude from the sanctions. But that doesn't solve the problem. Because what has happened is that, as far as Iran is concerned, the statement which they have issued is that they have no floating tankers. So, that is the only thing which can actually be sold out. If there are any floating tankers somewhere in the Indian Ocean, then they can be diverted and put up for sale...We have adequate reserves for the moment. Regarding gas, I think that we are going to suffer very severe shortages in the immediate future. Though over a period of time, we will overcome that problem also," he said.

Middle East Expert Waiel Awwad said that the closure of the Strait of Hormuz is only for the nations that are siding with the US and Israel.

He said, "Iran has allowed all the tankers of India to pass through the Strait of Hormuz, and they have already made it clear they are not blocking the Strait of Hormuz. They are only blocking for those countries that support the United States in this war. This gives another opportunity for India to cement the relationship with Iran despite the fact that the current scenario in the region is volatile, and we don't know how far this war will go."

Meanwhile, US President Donald Trump on Sunday warned Iran of obliterating its power plants if it fails to open the Strait of Hormuz.

Trump gave Iran precisely 48 hours for the job.

US Central Command said that they were clear in their objectives of eliminating Iran's ability to project power against Americans. It said, "U.S. forces remain centred on very clear military objectives in eliminating Iran's ability to project power against Americans, and against its neighbours."

Also, Major General Seyed Majid Moosavi, head of Iran's IRGC Aerospace Force, said on Saturday (local time) that Iran now dominates the skies of the occupied territories.

Moosavi said that the upcoming waves of attacks in those skies would leave the US and Israel 'dumbfounded'.

- ANI