U.S. Threatens India With Sanctions Over Iranian Oil

India must cut back its imports on Iranian oil by June 28 or face U.S sanctions. A new law targets Iran's central bank, which is used for oil transactions, and it penalizes foreign countries that ignore the sanctions.

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STEVE INSKEEP, HOST:

Possible sanctions for India are at the top of NPR's business news.

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INSKEEP: OK, India must cut back its imports of Iranian oil by June 28th or face U.S. sanctions. A new law penalizes foreign countries that ignore those sanctions.

Europeans have been working on their own embargo of Iranian oil, but Indians are reluctant. They depend on it more.

The law does not state exactly how much a country must reduce its oil imports in order to avoid sanctions, and it's not clear how far India is willing to go.

A government spokesperson says India has no legal obligation to abide by these sanctions although privately, Indian officials tell Bloomberg they're working on it.

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