Turkey to stop acting as intermediary for Iranian oil for India

Turkey to stop acting as intermediary for Iranian oil for IndiaAccording to some reports, Turkish firms might stop acting as intermediaries for the Indian firms to purchase crude oil from Iran in the wake of increased tensions between the authorities in Iran and western powers.

Oil firm officials have held meeting with Indian oil ministry officials in order to discuss alternative actions including routing remittances through Russia. The oil firms in India might also have to suspect import of oil from the country altogether to avoid any adverse actions by western countries.

According to analysts, the Indian government does not have a contingency plans and refiners in the country might be worried about the prospect of stopping the import all together from the Islamic republic.

The authorities in the Islamic republic of Iran have announced a new military exercise in the Strait of Hormuz, through which a majority of the gulf oil passes to several countries. European countries have found a common ground and have agreed in principle to impose a ban on Iranian oil in order to show a united stance amid growing tensions with the Islamic republic's government.

Iran is suspected of covertly developing nuclear weapons, a charge it denies and maintains that it has the right to harness civilian nuclear energy for generating power. A final decision on the ban of Iranian oil is expected to be taken before the end of January and will be enforced in planned phases in order not to disrupt global oil supplies.