India's state-run refiners are in talks with traders marketing Iranian crude and are preparing to buy barrels if the United States extends sanctions waivers beyond August or eases restrictions, according to a report by Bloomberg.
Sellers of Iranian oil are finding it harder to attract buyers, as prices of unsanctioned West Asian crude grades have collapsed following the ceasefire that helped restart oil flows through the Strait of Hormuz, the report said.
Indian refiners have little room to purchase Iranian oil right away, having fully contracted shipments through August after securing supplies in advance during the West Asia conflict, the report said. However, refiners may still pick up some Iranian cargoes if the discounts on offer are significant.
1 June 2026
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The talks are primarily aimed at securing access to Iranian barrels should Washington extend the waiver beyond the current August 21 deadline, the report added.
Prices of crude oil from within and outside the Persian Gulf have fallen several dollars below underlying benchmarks, narrowing the price advantage for Iran and cutting into its revenue, the report said. Saudi Arabia illustrated the competition to find oil buyers in Asia this week, recording its biggest monthly reduction in official selling prices since at least 2000.
Cargoes from Russia, India's top oil supplier since 2023, are being sold at steeper discounts, making Iranian oil comparatively less attractive to Indian refiners. Iranian crude is being offered at a discount of $4 to $5 a barrel to Brent, compared with a $6 a barrel discount on Russia's Urals crude, according to the report.
Iran was among India's top oil suppliers, accounting for as much as 10% of its oil imports in 2018, before sanctions curtailed the flow. The report said Indian buyers find Saudi crude unattractive despite the price cuts, due to high freight costs, and are more inclined to buy Russian grades, with discounts on Russian oil expected to widen further.
Russian Oil Imports Hit Record Levels
India's oil imports from Russia rose to a record 2.7 million barrels a day in June and are expected to average 2.6 million barrels a day this month, according to Kpler estimates cited in the report.
State refiners, including Indian Oil Corporation, the country's largest processor, are not currently in a position to take advantage of the 60-day sanctions waiver granted by the Trump administration for purchasing Iranian oil, as they had booked cargoes well ahead of schedule to prepare for supply disruptions during the war, the report said.
Despite this, Indian refiners are looking to tie up supplies from Iran to avoid losing out if purchases are permitted and pricing becomes more competitive. Government-run refiners will begin talks with suppliers in the coming weeks for September deliveries and may make provisions for Iranian oil, depending on progress in talks between Iran and the US on a permanent peace deal, the report added.
