Govt may shelve Iran trade deal after US pressures to cut ties with Tehran

A proposed preferential trade agreement (PTA) with Iran, being negotiated by New Delhi to access the West Asian country’s lucrative domestic market, could be the latest collateral damage of escalating tensions between Tehran and Washington DC.

Tensions between the US and Iran have heightened since US President Donald Trump ordered the assassination of top-ranking Iranian General Qasem Soleimani last week. This has worsened after Iran attacked US bases in Iraq on Wednesday.

The looming threat of all-out war has sent global crude oil prices soaring beyond $70 per barrel, a four-month high.

With the US asking all friendly nations to