A day after President Donald Trump withdrew the US from the Iran nuclear deal and decided to re-impose sanctions on the key crude oil producer, the industry chamber Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that this move will exert pressure on fuel prices and affect the Indian economy on the downside.
ASSOCHAM Secretary General D S Rawat has said that while there are other imponderables like Saudi Arabia trying to increase crude output along with major OPEC producers and the US allies like France not being on board, the global economy does face bouts of uncertainty and volatility. He added that in the short term, it is not a good news for the Indian economy, which meets bulk of its crude oil requirements from imports.
Trump had said that he was withdrawing the US from what he called the 'decaying and rotten' Iran nuclear deal signed by the Obama regime in 2015, putting him on a collision course with America's closest allies. Moments later he signed fresh set of sanctions against Iran and warned countries against any cooperation with Tehran on its controversial nuclear weapons programme. The nuclear deal was negotiated and agreed to by Iran and the P5+1 (the US, UK, France, China, Russia, and Germany), granting Iran sanctions relief and returning frozen assets in exchange for restrictions on its nuclear programme and international inspections.