India resumes Iranian oil imports after seven years amid energy crunch

India will receive its first Iranian crude shipment in seven years after a temporary US sanctions waiver, Reuters reports, citing Kpler and LSEG data. State-run Indian Oil Corporation is set to purchase the cargo, arriving later this week on the carrier VLCC Jaya, which is heading towards India’s east coast.

What’s changed: India had halted Iranian purchases — a discounted crude option once central to its import mix — in 2019 under US pressure. The current US waiver comes on the back of wartime disruptions causing tightened Middle East supply and elevated freight and ins. costs for Asian buyers.

Why it matters: Iran has amassed over 180 mn barrels in floating storage — unsold crude held at sea. India’s purchase offers Tehran an alternate buyer while providing Indian refiners a slight short-term price leverage as they face high premiums elsewhere. The government also clarified that Indian refiners faced no payment hurdles, allowing the country to diversify sourcing and secure energy supplies.

More oil in the pipeline? Another tanker, Jordan, is also signaling India as its destination, but flows hinge on how long the US waiver will hold.

India bends rules to secure supply

PLUS- India has eased port restrictions to fast-track delivery of energy cargoes from the Gulf, granting case-by-case waivers for Iranian-linked cargoes including aging and sanctioned ships, Reuters reports.

What we know: Aurora, a 30-year old LPG carrier, was cleared to berth at New Mangalore Port while Jaya, a US sanctioned crude tanker was also allowed to unload at the Paradip Port along the eastern coast. Both cargoes were cleared after baseline safety checks. This is a break from standard Indian port rules that typically bar ships over 20 years old or those sanctioned by Washington.

India-bound vessels trickle through Hormuz

With traffic through the Strait of Hormuz nearly ground to a halt on the second day of the ceasefire, two India-bound oil tankers managed to cross the strait yesterday, Hindu reports. Vessel movement dropped to near zero, as shippers await clarity on transit rules ahead of expected Iran-US talks in Pakistan.

Why it matters: The transit of the oil tankers — Marivex carrying Iranian crude to New Mangalore Port and MSG originating in the UAE — suggests that India is still securing coordinated transit through Iranian-controlled lanes by engaging directly with Tehran. A note by the Navy of the Islamic Revolutionary Guards Corps flagged potential naval mines in the strait and directed ships to pass through the narrow coastal corridors near the Iranian coast, the daily added.

MEANWHILE- India wants Tehran to fast-track India-bound oil and gas shipments to utilize the current ceasefire window and rebuild its fuel inventories in a bid to stabilize domestic supply, Economic Times reports, citing unnamed officials. Around 16 Indian-flagged ships remain stranded in the Gulf, with nearly 800 vessels caught in the region.

Recovery to take time: Despite the halt in hostilities, a full normalization of oil trade could take up to three months. Slow vessel movement, limited tanker and ins. availability, and production disruptions are logistical bottlenecks that await. While some LPG carriers have crossed the Strait of Hormuz, the backlog clearance will be gradual.

Toll tensions linger: Iran may not fully restore shipping flows without a lasting agreement. India has reiterated its stance on zero-toll navigation, even as discussions around a potential transit levy in the Strait of Hormuz add to the uncertainty, with Europe and US pushing for unrestricted navigation.