In order to keep its oil clients in Asia, Iran has started to offer cargo insurance to India, reports Reuters. Iran’s key market for oil located in Asia is under threat as the U.S. sanctions will be back in November.
ISNA reported that the Indian oil purchase from Iran has already dropped by 12%. While most of the cargo insurers already hesitate to continue business in Iran, the problem worsens when they require a re-insurance company. However, the global market is dominated by European and American reinsurers who are not seeking risks of breaking sanctions.
“Right now the situation is very strict. (U.S. and European) reinsurers are not giving any cover for Iran related activities,” said a source at Indian’s General Insurance CO. to Reuters.