Given that Iran accounts for around 10 per cent of India total oil imports, the immediate factor for New Delhi will be to look at various options to deal with the situation without jeopardising its energy security.

Despite the easing of international crude prices, the central government is unlikely to cut central excise duties since a cut of Re 1 would result in a loss of revenue of Rs. 10,725 crore.

China’s launch of a yuan-denominated oil futures exchange will provide it with the opportunity to create an Asian crude oil benchmark and give it more clout in crude pricing and for promoting the yuan as a truly global currency.

Crown Prince Salman has been using oil as a tool to further his political ambitions both domestically and internationally, and Saudi Aramco acts as a nucleus around which his ambitions revolve.

If India gets a stake in the proposed Aramco IPO, it would mean getting a share of profits from one of the world’s largest and most profitable companies.

Although President-elect Trump has declared his intention to deregulate the fossil fuel sector in order to make America less energy import dependent, but over time, this will lead to an increase in supplies in an already over-supplied oil (and gas) market and send prices into a further downward spiral.