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Country / 31 July, 2025

US Sanctions Six Indian Entities Over Trade Ties with Iran Petroleum Sector

New Delhi/Washington  — The United States has imposed sanctions on six Indian companies for allegedly engaging in trade with Iran’s petroleum industry, which Washington claims is being used to fund terrorism and fuel conflicts across the Middle East.

 

The U.S. State Department stated that the sanctioned Indian entities were involved in the purchase, transport, or sale of Iranian oil products, in violation of existing American sanctions aimed at curbing Tehran's influence. These sanctions are part of broader efforts to isolate Iran’s petroleum revenue, which U.S. officials say is being used to fund militant groups, suppress dissent, and destabilize the region.

 

The U.S. also emphasized that the goal of the sanctions is not to punish countries like India but to promote "positive behavior change" in international dealings with Iran. The move comes amid rising geopolitical tensions and renewed scrutiny of countries continuing business with Iran despite U.S. warnings.

 

While India has not officially responded, experts warn that such sanctions could strain India-U.S. trade relations and complicate its energy security policies. Washington has urged global partners to reduce economic engagement with Iran until it complies with international obligations.

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