USA–Iran Conflict

The US–Iran rivalry, rooted in the 1979 Iranian Revolution and US sanctions, remains a key driver of instability in West Asia.

Recent developments:

• US withdrawal from the JCPOA (2018) reimposed sanctions on Iran, crippling its oil exports (falling from 2.5 million barrels/day to <500,000 by 2020).
• Killing of General Qasem Soleimani (2020) escalated tensions, prompting proxy conflicts across Iraq and Syria.
• Iran’s enrichment of uranium beyond 60% (IAEA, 2023) raised nuclear proliferation concerns.

Global & Indian impact:

• Volatility in oil prices directly affected India’s import bill; crude import cost rose by 20% in FY2019–20.
• India halted oil imports from Iran due to US sanctions, impacting refiners in Haryana (Panipat refinery) and Gujarat.
• India’s strategic projects like Chabahar Port faced delays, although humanitarian trade exceptions were later restored.

Significance:

The conflict underscores the fragility of energy security and the need for India’s strategic oil diversification and emphasis on renewable sources.