Indian refiners are preparing to resume purchases of Iranian oil after the US issued a temporary sanctions waiver covering crude already at sea, Reuters reports, citing unnamed sources. This comes on the back of refiners across Asia exploring similar options to ease supply pressures.

Why it matters: India halted oil imports from Iran in 2019 following the sanctions imposed by Donald Trump in his first tenure as president. These restrictions severely impacted India-Iran trade which declined from USD 17 bn in 2018 to USD 1.7 bn in 2025. India imported over 10% of its oil needs from Iran before 2019.

Unlocking stranded supply: The 30-day sanctions waiver is expected to release significant volumes of Iranian crude already held on tankers, providing a reprieve to squeezed markets. India, with relatively limited strategic reserves, has already increased purchases of unsanctioned Russian oil and is now working to procure Iranian barrels as an additional buffer.

Meanwhile- Operational challenges persist, including payment channels, compliance requirements and reliance on aging shadow fleet vessels. Refiners will likely move cautiously despite the chance to secure cheaper crude. Companies are awaiting government guidance and clarity from Washington on payment mechanisms before proceeding, with the hurdle remaining in place until a permanent payment mechanism is cleared.

Aramco squeezes Asian crude supply

Saudi Aramco is cutting crude supplies to Asian buyers for the second consecutive month in April, Reuters reports, citing sources. Aramco is restricting its April term-customer supplies exclusively to Arab Light crude exported from the Red Sea port of Yanbu. The shift is keeping supplies to Asian refineries tight and is expected to cap their output of refined products.

By the numbers: Saudi crude exports have taken a significant hit, dropping to 4.35 mn barrels per day (bpd) so far in March, down from a hefty 7.1 mn bpd in February, the newswire added citing Kpler data.

LPG tankers set to sail

Two Indian-flagged liquefied petroleum gas (LPG) tankers are preparing to transit the Strait of Hormuz amid the ongoing hostilities, Reuters reports. The vessels, Pine Gas and Jag Vasant — chartered by Indian Oil Corporation and Bharat Petroleum Corporation — are anchored near Sharjah port and ready to depart, with a potential sailing window in the coming days.

Power outlook steady

India does not expect the war to disrupt its ability to meet peak summer electricity demand, Reuters reports, citing government officials. India is ramping up coal-fired generation and fast-tracking renewable capacity additions to bridge any shortfall. A 4 GW coal plant in Gujarat is set to restart, while solar and wind capacity are expected to support daytime demand. Battery storage projects will also be used to cover evening peaks.

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