Pakistan-Iran Nuclear Nexus Triggers Alarm Bells in US, Big Trade Pact Raises Eyebrows In India
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Time of India
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Realme Buds T200 Review: Vibrant Sound, Sleek Design
'What Cr*p!': Trump Border Czar Tom Homan Cites Iran In Angry Rant Against 'Illegal Aliens' | Watch U.S. Border Czar Tom Homan held a fiery press conference in Washington, D.C., defending the Trump administration's latest crackdown on immigration and detention policies. Addressing concerns over the controversial "Alligator Alcatraz" detention facility in Florida, Homan slammed what he called "fake media stories" about inhumane conditions, asserting the site is well-run, medically equipped, and legally compliant. Homan also revealed the administration's ambitious plans for a 1,000-bed facility in Indiana and declared that over 300 Iranian nationals had recently been apprehended as national security threats. Watch. 2.4K views | 13 hours ago
Hindustan Times
12 minutes ago
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If America goes after India's oil trade, China will benefit
WHEN WESTERN countries began boycotting Russian oil in 2022, India saw an opportunity. Some 2.6m barrels a day (b/d) of crude once destined for Europe were available—at a sweet discount. India, which bought next to no oil from Russia in 2021, pounced. It has remained Russia's biggest customer ever since. Today it imports nearly 2m b/d of Russian 'sour', heavy crude, representing 35-40% of its crude imports. The supply reduces India's import bill at a time when the world's fastest-growing big economy burns ever more petroleum. Local refiners make a killing by processing the stuff into fuels that they then export at full cost. For three years Ukraine's allies did not object, and the strategy looked savvy. Now it is in jeopardy. Irked that Vladimir Putin is making no effort to end his campaign in Ukraine, on August 6th President Donald Trump slapped an extra 25% tariff on India, which he accuses of funding Russia's 'war machine'. A bill vowing levies of up to 500% on countries that buy Russian oil is making its way through Congress. Meanwhile, the European Union's 18th package of sanctions will ban refined products made from Russian crude in January. The tariffs will hurt but the bans lack bite. Indian refineries—other than those backed by Rosneft, a Russian oil giant—source most crude from outside Russia; they can argue their products are not made from Russian stuff even if there is some in the blend. That makes the EU ban hard to enforce. Mr Trump's hope is to bring down Russia's oil revenues in order to force Mr Putin to halt his offensive. Preventing Russian oil from reaching foreign markets, however, could push global prices up, which would be politically uncomfortable for America's president. All this might explain why the market remains calm. There is still potential for a storm. Unlike China, which imports 2m b/d from Russia, India does not have a history of defying American sanctions. When Uncle Sam pledged to penalise anyone buying Iranian oil during Mr Trump's first term, India swiftly complied. This time the White House is 'serious about pressuring India to go to zero', says a source familiar with its thinking. Placid markets may embolden Mr Trump. He could supplement his tariffs with threats that any bank, port or firm facilitating Russian sales will be cut off from American finance. What if he did? First, India would race to find new supplies. Its refiners have already reduced Russian orders by 40-50%, estimates a trader. In theory, Middle Eastern countries, which have 3.5m b/d in spare capacity, could provide additional help, along with producers from Africa and elsewhere. In practice, a lot of Gulf supply is already committed to East Asia through long-term contracts, and much is a lighter type than the 'Urals' for which Indian refiners would be looking. Russia, meanwhile, would struggle for buyers. Chinese refiners could absorb more oil, and the country's leaders have shown they can retaliate successfully against Mr Trump's tariffs, but they do not want to end up reliant on any single supplier. Such analysis dictates that, were America to insist on immediate compliance, global oil prices would jump, perhaps to over $80 a barrel. Mr Trump could not countenance that for long. Very soon he might introduce waivers phasing in the restrictions over six months, allowing markets to adjust—a repeat of 2018-19, when soaring prices in the wake of Mr Trump's sanctions against Iran forced America's president to soften his approach. An oil glut is expected early next year, which might accommodate tough-but-phased-in Russian sanctions. Given enough time, India would probably manage to replace most of its current Russian supply, albeit at a higher cost (Urals crude currently trades at a $5-10 discount to other comparable grades). The margins of Indian refiners would be crushed. As they retreated from the market, the winners would be their Chinese rivals, which have been restocking fast in recent months, giving them plenty of firepower. Being less exposed to American sanctions, they would also continue to buy Russian crude—at a growing discount.
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Business Standard
3 hours ago
- Business Standard
Scrapping of US-sanctioned tanker in India shows dark fleet pain
The sale of a US-sanctioned tanker being pulled apart in India includes extended payment terms and measures to shield the identity of the owner, unusual clauses that point to growing pressure on older dark fleet vessels as sanctions enforcement tightens. Contract II — built almost three decades ago and sanctioned in 2019 under the name Jasmine for its involvement in the Iranian oil trade — beached in late June at Alang, a ship-breaking center in western India that has become a hot spot for dark-fleet vessels. More such ships have turned up at the hub over the past months, as penalties make it harder to keep old tankers in the illicit oil trade. An eight-page sale document seen by Bloomberg, a rare glimpse at the financial terms around a sanctioned ship's demolition, includes details of a 180-day period for payment, far longer than what people familiar with the ship-scrapping business described as the industry standard of a few days or weeks. The buyer, listed as Shantamani Enterprise LLP in the contract dated May 20, can wire-transfer partial payments, interest free, over the period of almost six months. 'No seller would accept to wait for his money so long after delivery,' said Andrew Wilson, head of research at BRS Shipbrokers, who reviewed parts of the contract. 'This indicates that the seller needs to get rid of this ship rapidly.' Bimco, a global shipping organization that creates standard contracts, said a buyer would usually make a deposit and then pay what's left of the purchase price no later than three banking days after delivery has been decided. Two calls to Shantamani went unanswered and the company didn't respond to an email with a list of questions about the purchase. The US and European Union have repeatedly added more ships to their sanction lists for supporting Russian, Iranian and Venezuelan oil exports. A year ago, there were 191 sanctioned tankers, while the tally is now at 886, or 78% of the dark fleet, according to BRS. Older sanctioned tankers, with no chance of taking on mainstream trades, now either have to compete with younger ships in the blacklisted flotilla, or else head for the breakers. Selling at a Discount The document lists Thousand Miles Shipmanagement Corp. as the seller of the vessel — a company with a registered address in the Seychelles that's linked to other US-sanctioned entities, but has no online presence or contact details. Brokers that deal with ship scrapping will sometimes set up a special-purpose vehicle to handle the final delivery of vessels sent for demolition, but the use of shell companies to shield owners is also common with dark-fleet tankers. Industry participants questioned by Bloomberg did not have any knowledge of Thousand Miles. Bank account details are almost always listed in the document too, according to industry sources. However, that information is absent from the Contract II document, which lists the payment price at 14.04 million United Arab Emirates dirhams ($3.82 million). UAE dirhams are not commonly used as currency for such deals, far more frequently settled in US dollars, they added. They asked not to be named as the matter is sensitive The payment terms and use of a shell company are measures intended to make it harder for the transaction to be traced back, while sweetening the deal enough for would-be buyers to take the risk, according to Charlie Brown, a senior adviser at United Against Nuclear Iran. It fits a trend in the trade of blacklisted ships, said Brown, who focuses on maritime sanctions enforcement at the advocacy group. As with most such deals, the tanker was sold at a discount relative to the market, based on the rate for scrap steel in India at the time the document was drafted. That could make sense for both seller and buyer, with Thousand Miles likely keen to get rid of blacklisted tonnage, and the scrapyard seeking to keep margins healthy and stay ahead of the competition at a time when the sector is battling a downturn. The process of pulling apart Contract II started this week, according to the people familiar with the industry. Demolition typically begins around a month after a ship has beached to allow for fuel removal and official authorization for scrapping.
