Abstract
Iran, being a major player in the hydrocarbon sector, is both an opportunity and a challenge for India. While Iran’s hydrocarbons could partly address India’s growing appetite for oil and natural gas and contribute to its energy security, its willingness to transform its energy ties with Iran beyond purely commercial transactions coincided with its desire to negotiate a civil nuclear deal with the US. Moreover some of the energy deals between the two countries are stuck over price disputes and technology difficulties, while others have come under international pressure and scrutiny. While international sanctions against Iran undermine India’s ability to pursue its energy ties with Iran, maintaining the status quo has some economic and political advantages. Hence, India is not yet ready to abandon Iran for the US.