US sanctions against Iran could do a lot of damage, said Vandana Hari of Vanda Insights, adding that they could actually prevent companies and governments in other countries to not do business with Iran.

President Donald Trump on Tuesday said he was reimposing economic sanctions on Iran and pulling the United States out of an international agreement aimed at stopping Tehran from obtaining a nuclear bomb.

Speaking on crude market, Hari said, “The bigger question for oil market is now going to be what is the scenario over the next three-six months or even a longer-term."

“Asian buyers have already been hit in a big way and if you talk about India, the cost has gone up. There could be other impacts in terms of the US pressuring Indian oil companies and refiners through the government to reduce imports from Iran," she added.

First Published:May 9, 2018 10:21 AM IST