Oil War

5/15/2019

In the background of American sanctions on Iran events are taking serious turn of eruption of oil war in the Arab Gulf regions. The Saudi Arabia is top petro crude producing nation and close alley of America. After sanction in Iran the America deployed 2 aircraft carrier warship in the Gulf region to ensure safe sea passage to oil tankers of other nations except Iran, to other countries. The Iran and Saudi Arabia are tradition rival and competitor in oil business. Besides oil it are religious rivals also. The Saudi Arabia ‘Sunni’ nation and leader of the Sunni world. While Iran is ‘Shia’ nation and leader of Shia world. The Iran fears that during the sanction period it may lose clientele of many nations in oil business. In such suspicious and tense atmosphere 2 oil tankers of Saudi Arabia were attacked in the Gulf Hamaj by some unknown source. But it is believed that Iran must be behind the attack. The American Secretary of State (Foreign Minister) cutting short his Moscow visit, rushed to Saudi Arabia on getting information of attack on Saudi oil tankers. There are apprehension that it may result in full scale Gulf oil war and upsetting the oil supplies in the entire world. Earlier America attacked Iraq twice on occupying oil nation Kuwait that finally resulted elimination of Iraqi President Mr.Saddam Hussain. Iran anyhow wants to operate its oil business and India is its very reliable customer. India buys most of oil from Saudi Arabia as its number one nation, the second is Iraq and number 3 is Iran. Earlier also when America imposed sanction on Iran oil sale and purchase India ignoring US sanction kept buying petro crude on an agreement. The Arab world oil trade currency medium in US dollar. In the Agreement with India and Iran decided that India would crude payments in its currency of Rupee and Iran would increase its imports from India. The India is exporting Basmati variety of rice and Malwa – Sharbati wheat to Iran, besides many other finished goods. Now again on the recent US sanction on Iran its Foreign Minister MrJaved Zarif has arrived in India and holding talks with Indian foreign Minister Mrs.Sushma Swaraj. The Iran wanted other nations to honour their oil agreement that were signed before the sanctions. There are possibility with sense of certainty that India and Iran will continue to sale and buy as it is. India and China petro crude requirements is heavy. The US is putting pressure in Saudi Arabia to enhance its oil production and maintain oil supply to India and China.All the oil producing Arab nations have depended itself on US by accepting its currency Dollar in the oil trade as its medium. Although the America has said that it had no intention to start a war with Iran but attack on Saudi oil tankers may erupt in oil war.