By Deepak Rangan
No other country is at the moment more alienated in world politics than Iran. Without oil, one but wonders if it would have had any international support (read Asia) in the present situation.
On the back of the EU ban, many traders are waiting to see if there will be any similar move from Asia. But unlike the EU, the Asian countries are far more dependent on oil from Iran and as such, they are not expected to significantly reduce importing from Iran.
India has been a strong supporter of Iran, seeking a peaceful closure to the whole issue and despite high pressure from its ally, the US, India has strongly stated that it would continue to import from Iran. And so will China, obviously. Even hypothetically, it will be impossible for both India and China to cut back on Iran oil since both countries are caught in a high inflation situation. And the last thing they need is for oil prices to shoot to the sky
Meanwhile, South Korea is caught between satisfying its domestic energy requirements and satisfying US demands. The country is reportedly seeking an exception from the US, a permission to continue importing oil from Iran. The Japanese, on the other hand, are also not expected to cut back on oil imports, especially when it is seeking to compensate for the loss of nuclear power.
So,with major Asian countries like India,China, Japan and South Korea very dependent on Iran to meet its energy needs, no one actually expects an EU like move from Asia.
