U.S. sanctions that went into effect on February 6 also make it nearly impossible for Iran to repatriate foreign currency. India currently buys Iranian oil by paying into an in-country escrow account managed by the Iranian government. India’s oil purchases now act as a kind of domestic stimulus: India used to pay for oil in dollars that would end up in Iran. Now it pays in rupees that can only be spent in India, on Indian products.

Read Here – The Atlantic