India has received Iranian crude for the first time since 2019 after the US granted a temporary waiver on sanctions to ease global oil prices.
Tankers carrying Iranian oil reached Sikka port in western India and Odisha on the eastern coast, with supplies purchased by Indian Oil Corp and Reliance Industries.
The move comes amid heightened tensions in the Strait of Hormuz and a surge in Brent crude prices to multi-year highs above $119 per barrel.
Iran Oil Returns to India After 7-Year Gap as Trump Eases Sanctions
India resumes Iranian oil imports after seven years as the US grants a temporary sanctions waiver to ease soaring crude prices and market volatility
Freepik
Summary
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India has received its first Iranian oil shipment in seven years, according to a Reuters report citing ship-tracking data. Two very large crude carriers transporting Iranian oil have reached Indian ports as refiners take advantage of a temporary waiver granted by the US to purchase oil from Tehran.
According to the report, an Iran-flagged large tanker arrived at Sikka port in western India, while the Curaçao-flagged vessel Jaya reached the eastern port of Odisha. State-owned Indian Oil Corp purchased Iranian crude loaded on the Jaya, Reuters said. Private refiner Reliance Industries bought Iranian oil shipped on Comoros-flagged and Curaçao-flagged tankers.
India has not imported Iranian oil since 2019 due to Western sanctions, despite being the world’s third-largest oil importer. In recent years, India increasingly relied on discounted Russian crude following the Russia-Ukraine war, a move that also drew scrutiny from Washington and its European allies.
Last month, the Trump administration waived sanctions on purchases of Iranian oil amid a surge in global crude prices. The conflict that began on February 28 pushed oil prices to multi-year highs, with benchmark Brent crude breaching $119 per barrel.
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To ease volatility in the oil market, the US allowed limited purchases of Iranian and Russian oil for a period of 30 days. The International Energy Agency (IEA) also released its largest-ever emergency reserves to calm markets and prevent crude prices from approaching the psychologically critical $150 per barrel level, which risks triggering a global recession.
Iran Denies Claims of Toll for Indian Vessels
Amid rising concerns over transit through the Strait of Hormuz, Iran’s Ambassador to New Delhi said on Monday that Indian tankers were not charged tolls to pass through the waterway.
“You can ask the Indian government if we have charged anything up to now,” Ambassador Mohammad Fathali said. “In this difficult time, we have good relations. We believe Iran and India share common interests and a common fate,” he added. India has said that 15 India-flagged vessels remain stuck in the Persian Gulf.
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Following a fragile two-week ceasefire announced on April 7, Iran had indicated that vessels passing through the strait may be required to pay a transit fee, which could be used to rebuild critical infrastructure damaged during the conflict. After the latest round of negotiations failed, the US announced that its navy would move to block the strait in an effort to pressure Iran into further concessions at the negotiating table.