India foresees Iranian crude problems

New Delhi might have problems making payments for Iranian crude oil supplies because of Western efforts to thwart Iran's nuclear ambitions, an official said. The International Atomic Energy Agency last year found there could be military aspects to parts of Iran's nuclear program. In response, Western countries sanctioned Iran's energy sector and moved against its Central Bank, which processes Iranian crude oil transactions. A senior Indian official told The Wall Street Journal on condition of anonymity that New Delhi could have payment difficulties because of the sanctions. He added, however, that "we don't see any disruption in supply unless the Strait of Hormuz is closed." Iran is one of the largest crude oil producers in the world. It recently threatened to close oil shipping lanes in the Strait of Hormuz in response to economic sanctions. New Delhi last year was $5 billion in debt to Tehran after receiving Iranian crude on credit because of payment obstacles brought on by economic sanctions on Tehran. Indian refiners had said they opened an account in the Union Bank of India to transfer payments based on the euro to Turkey's state-owned Halkbank in Istanbul to get around the economic roadblock.