NEW DELHI — The Indian government is evaluating the resumption of Iranian crude oil imports following a temporary easing of United States sanctions. The Ministry of Petroleum and Natural Gas confirmed the ongoing review on Monday, marking a potential shift in global energy trade dynamics amid severe supply disruptions.
The decision to resume purchases will depend strictly on “techno-commercial feasibility,” according to Joint Secretary Sujata Sharma. Indian refiners must determine the practical logistics of processing the crude, securing maritime transport, and establishing compliant payment routes before any transactions are finalized.
Market Impact and The US Waiver
The review follows a recent policy shift in Washington. US Treasury Secretary Scott Bessent issued a 30-day sanctions waiver, valid until April 19, 2026, targeting Iranian oil already loaded onto vessels on or before March 20. The measure aims to unlock an estimated 130 million to 170 million barrels of crude currently stranded at sea.
This rapid supply injection is designed to stabilize surging global energy markets. Brent crude recently closed at $112.19 per barrel, driven by the ongoing conflict between the US, Israel, and Iran. For New Delhi, securing discounted Iranian crude could mitigate domestic energy costs and reduce broader stagflation risks triggered by the high price of imported oil.
Indian refiners are planning to resume Iranian oil purchases following US 30-day sanctions waiver (March 20-April 19, 2026) for oil loaded pre-March 20, unlocking ~140-170M barrels at sea.
Third waiver since US-Iran war; addresses energy crunch from Strait of Hormuz disruptions… pic.twitter.com/3LwvO5w2Eu
— Sahil Khanna (@Intellectualins) March 23, 2026
Logistical Hurdles and Historical Context
While Indian state-run and private refiners have expressed interest in the available crude, significant operational uncertainties remain. Buyers are waiting for explicit guidance from the US Treasury regarding permissible payment mechanisms, insurance coverage, and compliance regulations for utilizing the aging shadow fleet currently holding the oil.
The broader regional conflict has also severely impacted transit through the Strait of Hormuz. The critical maritime bottleneck typically handles 20 percent of global oil and gas shipments.
The International Energy Agency recently issued a warning that global oil supply could decrease by 8 million barrels per day in March as a direct result of these disruptions.
Before the Trump administration tightened sanctions and forced a total halt in May 2019, India was a primary buyer of Iranian Light and Heavy grades. At peak volume, Iranian crude accounted for 11.5 percent of India’s total oil imports due to highly favorable commercial terms and strong compatibility with Indian refining infrastructure.