• By Imran Zafar
  • Sun, 13 Oct 2024 10:38 AM (IST)
  • Source:PTI

The United States imposed sanctions on about a dozen companies in response to Iran’s missile attack on Israel on October 1. These sanctions primarily target companies involved in trading oil with Iran, including an Indian firm. The Indian company, Gabbaro Ship Services, operates through its tanker "Hornet," which is part of Iran's so-called "Ghost Fleet" that clandestinely supplies petroleum products to Asian countries, according to the US State Department. 

The latest round of US sanctions affects firms from various countries, including the UAE, Malaysia, Hong Kong, and Suriname, all linked to Iran’s oil trade. These companies are now prohibited from engaging in any economic activities within the US. 

US National Security Advisor Jake Sullivan condemned Iran's missile strike, stating that the attack, targeting Tel Aviv, could have resulted in the deaths of thousands of civilians. He stated that actions against Iran are important after the Iranian missile attacks on October 1, opposing actions that target innocent populations.

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The escalating tensions between Israel and Iran raise concerns about a potential war, which could have far-reaching economic consequences, especially for India. India has long-standing trade ties with Iran, which includes exporting large quantities of food products like Basmati rice and tea while importing sunflower oil. 

In the financial year 2023-24, India exported USD 680 million worth of Basmati rice to Iran, making up 19 per cent of India’s total Basmati rice exports. Any conflict between Iran and Israel could disrupt these exports, directly impacting India’s rice trade.

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Additionally, India exported USD 32 million worth of tea to Iran in the same period and imported sunflower oil from the country. A potential escalation in the region could lead to price increases in sunflower oil, further affecting the average cost of food in Indian plates.