Iran throws Taliban a lifeline by resuming oil supply to Afghanistan

<p>
In a major development that will provide the Taliban some relief, Iran has resumed supply of gasoline and gasoil to the war-torn Afghanistan just a few days ago, a <a href="https://www.reuters.com/world/middle-east/iran-resumes-fuel-exports-afghanistan-after-taliban-request-union-says-2021-08-23/">Reuters</a> report said. The decision was taken following requests from the Taliban which has taken control of Afghanistan with the withdrawal of the US troops.</p>
<p>
The political uncertainty in the Central Asian country pushed oil prices to $900 per tonne last week.</p>
<p>
“To counter the price spike, the new Taliban government asked Iran to keep the borders open for traders,” the report said.</p>
<p>
The main Iranian exports to Afghanistan are gasoline and gasoil. Iran exported about 400,000 tons of oil to Afghanistan between May 2020 and May 2021.</p>
<p>
Besides, oil, Afghanistan accounted for 11 per cent of Iran's total non-oil exports between March 21-June 21—the first quarter of the Iranian financial year.</p>
<p>
According to <a href="https://www.tehrantimes.com/news/464208/Trade-between-Iran-Afghanistan-getting-back-to-normal">Tehran Times</a> trade between Iran and Afghanistan, which “declined 15 per cent over the past two months, is now back to normal levels.”</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/will-the-afghanistan-situation-have-a-bearing-on-global-oil-prices-109155.html">Will the Afghanistan situation have a bearing on global oil prices?</a></strong></p>
<p>
The news organisation noted that following the recent unrest in Afghanistan, Iran’s exports to the country had fallen significantly and Iranian exporters were looking for alternative markets.</p>
<p>
As the Taliban took charge, aid has thinned down. The aid-dependent country is in the midst of a financial crisis as well. The Taliban is in desperate need of financial resources to run the country.</p>
<p>
“Taliban won militarily – but now have to govern. It is not easy,” Ajmal Ahmady, Afghanistan’s acting Central Bank governor, who has fled the country, tweeted a few days ago.</p>