Buying Iran Oil Is Good Economics and Politics

All economies depend on a steady energy supply, but the world’s second largest oil producer, the United States, has imposed sanctions on Iran, sixth largest producer. India, ranking 23rd, plans on buying more Iranian crude oil: “Realism dictates India to turn increasingly to Tehran as it faces a major current account deficit problem on account of the burgeoning oil import bill,” suggests the New Indian Express editorial. “Dollar-priced oil has become unaffordable in view of the depreciation in the value of the rupee vis-a-vis the dollar.” India can pay Iran with rupees. Good Indo-Iranian relations are a priority, the newspaper maintains. India, a nuclear weapons state, can disapprove of a similar program for Iran while serving as a conduit for Iranian imports. Iran also helps India send its products into Afghanistan, thus countering Pakistan’s influence. Meanwhile, the US isn’t encouraging development of alternative sources. Any set of countries – including India, the US, Afghanistan and Iran – can have overlapping areas of agreement or disagreement. Diplomacy requires emphasis on areas of agreement. – YaleGlobal