US sanctions four Indian firms over Iran oil trade

The US has imposed sanctions on four Indian companies and three citizens for alleged involvement in Iran's petroleum trade.

The United States has imposed sanctions on four Indian companies and three Indian citizens accused of being involved in Iran's petroleum and petrochemical business. This action by the US is part of the ‘Operation Economic Outcast’, aimed at curbing Iran's revenue by imposing sanctions on its main sources of income.

In fact, the US military has not been able to decisively defeat the Iranian military on the battlefield. At the start of the war, US President Donald Trump had announced several military objectives against Iran, but none of these objectives were fully achieved. Therefore, the Trump administration is now working on a new strategy. Under this, more economic sanctions are being imposed on Iran, which has long been enduring tough US sanctions.

According to CNN, US Treasury Secretary Scott Basent had warned countries a day earlier of serious consequences if they maintained any trade relations with Iran. Basent also stated,

President Trump is personally requesting cooperation from the heads of several countries on this issue. Although the Treasury Secretary did not name any country, CNN reported, citing experts, that countries like China, India, Turkey, Iraq, and the United Arab Emirates could fall under the scope of these sanctions.

According to a 26 August report by the ECONOMIC TIMES, the US State Department has imposed sanctions on four Indian companies accused of trading with Iran. The report lists these four Indian companies as:

1. Portage Partners LLP

2. Sadashiva Overseas Limited

3. PP Softtech Private Limited

4. Prakritij Infra Impex India Private Limited

The US State Department stated in its statement that Portage Partners is a customs broker company accused of helping bring shipments of petrochemical products from Iran to India.

Additionally, the US has accused Sadashiva Overseas of importing Iranian petroleum products worth approximately $69 million from several companies. According to the US State Department, PP Softtech and Prakritij Infra allegedly imported Iranian petroleum products worth approximately $25 million each.

Besides these companies and individuals, the US Treasury Department also imposed sanctions on 60 other individuals, companies, and ships on Monday.

US Bows to China

Neither US Treasury Secretary Scott Basent nor the State Department mentioned China in their statements, even though China is one of Iran's largest trading partners. Basent also refused to disclose whether Chinese banks would be targeted under these sanctions.

On 25 August, China's Foreign Ministry issued a statement saying that its cooperation with Iran is in accordance with international law and should not be subject to any external interference or obstruction.

Chinese Foreign Ministry spokesperson Lin Jian stated on Tuesday that,

China is closely monitoring developments related to the new US sanctions on Iran and will take all necessary steps to protect its rights and interests.

According to a 25 August report by the Financial Times, China has warned the US regarding the sanctions imposed on Iran that if the Trump administration expands the scope of new secondary sanctions to include large Chinese companies, China will respond strongly.

According to the report, China is the largest buyer of Iranian oil, purchasing about 90% of Iranian oil. Therefore, if the US imposes sanctions on major Chinese companies, it could cause serious tensions in relations between the two countries. This is particularly significant as US President Donald Trump and Chinese President Xi Jinping are scheduled to meet next month.

A spokesperson for China's Foreign Ministry stated that China will take "all necessary steps" to protect its rights and interests. China also stated that it opposes such unilateral US sanctions that have no basis in international law or United Nations Security Council approval.

China's major state-owned oil companies generally comply with US sanctions on Iranian oil. However, some smaller private refineries in China, known as "teapot refineries," continue to purchase and process oil from Iran.

In recent years, China has also developed a mechanism under which it can retaliate against any foreign individual or entity that helps enforce foreign sanctions on Chinese companies or their supply chains.