English News

  • youtube
  • facebook
  • twitter

Iran throws Taliban a lifeline by resuming oil supply to Afghanistan

Taliban's challenge to run Afghanistan

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 Reuters report said. The decision was taken following requests from the Taliban which has taken control of Afghanistan with the withdrawal of the US troops.

The political uncertainty in the Central Asian country pushed oil prices to $900 per tonne last week.

“To counter the price spike, the new Taliban government asked Iran to keep the borders open for traders,” the report said.

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.

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.

According to Tehran Times trade between Iran and Afghanistan, which “declined 15 per cent over the past two months, is now back to normal levels.”

Also read: Will the Afghanistan situation have a bearing on global oil prices?

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.

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.

“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.