The US Government has threatened that it will no longer exempt any country from U.S. sanctions if they continue to buy Iranian oil.
US administration asked buyers of Iranian oil to stop purchases by May 1 or face sanctions. If this threat is carried out it would hurt Iranian economy severely and also affect the five remaining major importers of Iranian oil- China, India, Japan, South Korea and Turkey. India is the second biggest buyer of Iranian oil it is already in the process of lining up alternate sources to make up for the likely shortfall. India is in talks with Saudi Arabia, Kuwait and United Arab Emirates (UAE) to persuading them to fill the shortfall.
Once Iranaian oil exports stop it would likely cause a spurt in oil prices worldwide this would be bad news for India as this could lead to inflation besides negatively impacting the fiscal and current accounts.
