US temporarily lifts Iran oil sanctions: What does it mean for India

📌 Summary:

• The US Treasury issued a temporary 60-day general licence (valid until Aug 21) partially lifting sanctions on Iranian oil, authorising production, sale and delivery of Iranian crude/petroleum products to nearly all countries (except North Korea, Cuba, Crimea)
• It is part of a 60-day US-Iran MoU signed on June 17; in return Iran committed to free and open transit through the Strait of Hormuz and to permit IAEA inspectors
• India — a major buyer of Iranian oil until 2019 US sanctions — stands to benefit amid a supply crunch and energy-price volatility
• Iran was India's 2nd-largest supplier (~14% of crude imports in 2009) before imports stopped; India now relies heavily on Russian oil (~2.6 million bpd, ~54% of June imports)
• The US itself has not imported Iranian oil since the 1979 Islamic Revolution

🎯 UPSC Relevance: GS2 — India's energy security and West Asia diplomacy; how sanctions regimes shape oil trade.

📝 Prelims Facts:

• Strait of Hormuz: chokepoint linking the Persian Gulf to the Gulf of Oman; roughly a fifth of global oil transits it
• IAEA = International Atomic Energy Agency (headquartered in Vienna)
• Waiver valid until August 21, 2026

🔑 Key Term: General Licence — a US Treasury (OFAC) authorisation that permits otherwise-prohibited transactions for a defined period.