For starters, the Iran situation is sure to have an impact on crude oil prices, as the world has little spare capacity.
India, with the increases already made in the January-March loading plans from Iran, has to cut its purchases of the crude to about 110,000 barrels per day.
In order to facilitate purchase of crude oil from Iran, the Finance Ministry has issued a notification exempting payments made in Indian rupee for such imports from any local tax.
United States Secretary of States Hillary Clinton on Monday announced Obama administration's decision to exempt India and six other countries from US economic sanctions after they significantly reduced their imports of Iranian oil.
India's imports from Iran rose to 250,200 barrels per day
The organisation of oil producing and exporting countries on Monday ruled out any increase in oil output to cool the high international oil prices.
India depends on Iran for 12 per cent of its 80 per cent of imports of crude.
Responding to the questions from Congressmen, Assistant Secretary of State for South and Central Asia, Robert Blake said India is making progress in this regard not because of any pressure from the US, but because of "financial and commercial considerations".
Indian Ambassador to the US Harsh Vardhan Shringla said India has stopped importing oil from Iran after the United States refused to extend exemption from sanctions earlier this month.
India's insistence on continuing to buy Iranian oil defying United States sanctions, drawing common approach on China, Af-Pak situation and peace negotiations with Taliban dominated the talks of Foreign Secretary Ranjan Mathai, who concluded his maiden bilateral visit in Washington on Thursday. The "serious situation" in Maldives after the resignation of President Mohamed Nasheed and the multi-billion jets deal found passing mentions during Mathai's meetings.
"We are exploring if Indian oil firms can open accounts in banks like Dubai-based Noor Islamic Bank so they can undertake a direct transfer of money for oil they buy from Iran," a senior government official said.
The US will send its top energy expert to India next week to help the country reduce dependence on Iranian oil, Secretary of State Hillary Clinton has said as she lauded the steps taken by New Delhi on the issue.
Replacing Iran, which is India's third largest oil supplier behind Iraq and Saudi Arabia, will not be a problem but margins will be hit as Tehran offers the best commercial terms
Petroleum minister M Veerappa Moily would like to import 11 million tonnes of Iranian crude in this financial year.
India's decision to continue importing Iranian oil is a slap on the face of the United States, according to a former US diplomat who was the Bush administration's point-man on the Indo-US civilian nuclear agreement."India's decision to walk out of step with the international community on Iran isn't just a slap in the face for the US -- it raises questions about its ability to lead," said Burns.
Oil accounts for about a third of India's total imports and higher dollar prices combined with a rupee near all-time lows have increased its cost.
The Israel Defence Forces (IDF) intensified its campaign in Lebanon with targeted airstrikes on Hezbollah strongholds in Beirut, hitting key weapons depots and terror infrastructure overnight, according to a report by Times of Israel.
Whatever be India's course of action, it will have an impact on India-Iran ties, notes Aveek Sen.
Turkey's state-run Halkbank can only resume processing Indian oil payments to Iran once Western sanctions are officially lifted following an interim deal in Geneva last month, a senior Halkbank official said on Wednesday
'Had a very fruitful meeting with Iranian defence minister Brigadier General Amir Hatami in Tehran. We discussed regional security issues including Afghanistan and the issues of bilateral cooperation,' Singh said in a tweet.
India on Monday lost the ONGC Videsh Ltd-discovered Farzad-B gas field in the Persian Gulf after Iran awarded a contract for developing the giant gas field to a local company. "The National Iranian Oil Company (NIOC) has signed a contract worth $1.78 billion with Petropars Group for the development of Farzad B Gas Field in the Persian Gulf," the Iranian oil ministry's official news service Shana reported. "The deal was signed on Monday, May 17, in a ceremony held in the presence of Iranian Minister of Petroleum Bijan Zangeneh in Tehran." The field holds 23 trillion cubic feet of in-place gas reserves, of which about 60 per cent is recoverable.
Sensex heavyweight Reliance Industries fell 2.76 per cent. In percentage terms, major laggards were Yes Bank, Indusind Bank, RIL, ICICI Bank, HDFC and Axis Bank -- plunging as much as 6.62 per cent.
Oil has slumped from above $115 in June 2014 as shale oil from the United States has flooded the market
Teheran bargains on OilMin plan for more rupee payment via increased import; wants investment deal on gas block.
US is putting in effort to reduce dependency on Iranian oil
... and there is no stopping its pan-Islamic agenda, cautions Ambassador M K Bhadrakumar.
Iran has offered to help India meet its energy needs by relaunching rupee-rial trade for export of oil and gas, said Iranian ambassador to India Ali Chegeni. Chegeni said if both the countries resume rupee-rial trade, bilateral trade can touch $30 billion. Iran used to be India's second largest oil supplier but New Delhi had to halt imports after the former US president Donald Trump withdrew from the nuclear deal with Iran and re-imposed sanctions on its oil exports.
Iran's growing proximity to China may have also played a part.
Carter was in politics, but not a politician, certainly not a transactional politician, points out Shreekant Sambrani.
India has asked refiners that owe about $6.5 billion to Iran for oil imports to build up dollar and euro balances to avoid downward pressure on the rupee if six world powers and Tehran reach a final nuclear deal.
The Saudi and Iraq offer to replace Iranian crude supplies comes with a catch: Higher prices for the same quality of crude. The new government will face a tough decision over fuel price hike, says Aveek Sen.
Keeps open the option to make payments in yen or yuan in the face of sanctions
'All but one of the previous oil shocks brought either a change of government or a political crisis.' 'Is the government braced for stormy weather?' asks T N Ninan.
In a temporary reprieve, India will pay for Iranian crude oil in euros through a German bank based in Hamburg, while a permanent solution to the payment issue will be explored at a meeting in Teheran next week.
The sanctions have a singular purpose, denying the world's largest state sponsor of terrorists the capacity to do things like they did this past couple weeks, attempted assassination campaign in the heart of Europe, said US Secretary of State Mike Pompeo.
A day after killing of Hezbollah chief Hassan Nasrallah in an airstrike in Beirut, Israel conducted widespread strikes in Lebanon on Sunday, killing over 100 people. The Israeli Air Force (IAF) also launched airstrikes on military targets in Yemen, specifically targeting Houthi-controlled sites, including power plants and a seaport.
Indian Navy's destroyer INS Kochi responded following the attack on the vessel, MV Andromeda Star, on April 26, officials said, adding all the crew members are safe.
US crude is now more than 17 per cent below its opening price at the start of the month and Brent is down more than 16 per cent.
Oil prices dipped on Wednesday as the market prepared for a gradual increase of Iranian exports into an already oversupplied market from 2016.
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