Indian Refiners Set to Resume Iranian Crude Purchases After US Issues Temporary Sanctions Waiver

Indian oil refiners are preparing to restart imports of Iranian crude following a 30-day US sanctions waiver announced by the Trump administration, aimed at easing a severe energy shortage triggered by the ongoing US-Israeli conflict with Iran.

The waiver, detailed by the US Treasury, permits the purchase and delivery of Iranian oil already loaded on vessels on or before March 20, with discharge required by April 19. Industry sources indicate that approximately 170 million barrels of Iranian crude are currently afloat and available, according to ship-tracking data from Kpler, providing a short-term lifeline amid disruptions in the Strait of Hormuz.

Three sources from Indian refining companies told Reuters that they plan to proceed with purchases but are awaiting formal government approval and further clarification from Washington on critical details, including payment mechanisms, potentially involving rupee-based settlements or rupee-rial arrangements to navigate remaining restrictions.

India, the world’s third-largest oil importer and consumer, has historically been a major buyer of Iranian crude, previously sourcing hundreds of thousands of barrels per day before US sanctions intensified in 2018–2019. The country has faced acute supply pressures since late February, when the conflict escalated and severely curtailed Middle East shipments through the strategic chokepoint. This has forced greater reliance on Russian oil and prompted emergency measures, including reviews of fuel exports and increased domestic LPG allocations.

Refiners elsewhere in Asia are also assessing opportunities to tap into the floating Iranian cargoes, though India’s relatively lower crude stockpiles have made the waiver particularly significant for the country.

The move reflects pragmatic energy security steps amid heightened geopolitical tensions, but it remains limited in scope, no full lifting of sanctions or resumption of regular long-term trade is involved. Traders note that logistical challenges, compliance hurdles, and the narrow time window could constrain the volume ultimately secured.

This development follows recent high-level diplomacy, including phone conversations between Indian and Iranian foreign ministers discussing regional stability and bilateral ties.