New Delhi: The ongoing dispute between US and Iran over disruption of traffic flowing through the vital Strait of Hormuz oil route has posed trouble for India.  The warning given by Iran to close the Strait can temporarily cut off oil supplies creating stumbling blocks for Indian petroleum market.

According to the sources in Ministry of Petroleum, row between US and Iran has affected the crude oil prices in international market. Despite global recession, there are no possibilities of oil prices to decline. In such a situation, India is trying depend less on Iran for crude oil supply.

To maintain the demand and supply ratio without burdening the economy, the Petroleum Ministry is relying on countries like Indonesia, Malaysia, Russia and South Africa. It is also in talks with Iran to continue the oil supply.

During the current fiscal, only 1.20 crore tonne crude oil was purchased from Iran which is only eight percent of the total import while in 2008-09 India purchased 12-14 percent crude oil.

Iran is the world's fourth-largest oil producer, with an output of about 4 million barrels of oil a day. It relies on oil exports for about 80 percent of its public revenue.
Iran has adopted an aggressive military policy in recent months in response to increasing threats from the US and Israel.

JPN/Bureau