The development comes after the United States announced the termination of all waivers provided to eight nations, including India, to import Iranian oil without any sanctions.
Eight countries including China, India and Turkey had been given temporary waivers by the U.S. when it reimposed sanctions on Iran past year. Oil is mostly traded in dollars all over the world and a stronger dollar pressures the oil demand.
The decision not to extend the waivers is "intended to bring oil exports of Iran to zero", according to a White House statement.
China, the largest importer of Iranian oil, called the unilateral imposition of sanctions "illegal", while Russian Federation said the action was reckless. That period ends May 1st, leaving India (not to mention China, Japan, South Korea, Taiwan, Turkey, Italy and Greece) in the lurch.
There had been speculation that Riyadh could step in to plug the gap left by the removal of Iranian crude.
In remarks on Wednesday, Leader of the Islamic Revolution Ayatollah Ali Khamenei said Tehran will be exporting any amount of crude it wants, asserting that USA attempts to zero out the export of Iranian oil will be fruitless.
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News of the waivers cancellation caused oil prices to jump 3%, supported by Tehran threatening to close the Strait of Hormuz, top Iranian crude buyer China making its displeasure known and doubt being cast on the collaboration of reduced output from OPEC members and independent oil producers that fostered a price recovery over the past four months.
India imported 22.7 million tonnes of crude from Iran in FY19.
China has alternative oil suppliers including the United States and Saudi Arabia, said the officials, who spoke on condition of anonymity.
In point of fact, crude oil future prices had mushroomed more than 40 percent this year following implementation of an OPEC-led production cut of 1.2 million barrels per day and sanctions on Venezuelan state-controlled PDVSA alongside Iranian crude.
Foreign Minister Javad Zarif said on Thursday that Trump will not succeed in forcing Iran to capitulate to USA economic pressure because Tehran has a "Ph.D.in sanctions busting".
"We have not received any information from our Saudi partners or anyone else, any OPEC members, indicating they are ready to quit the agreements", Putin said. With the approaching summer season and the month of Ramadan due in ten days' time, Saudi oil consumption is reaching more than 4.6 million barrels of equivalent oil or about 2.6 million of crude and petroleum products.