India makes first Iranian oil purchase in seven years following US sanctions waiver
With the US temporarily easing secondary sanctions, India is now free to purchase Iranian oil as Tehran tightens its control over the Strait of Hormuz
India bought Iranian crude for the first time in seven years, with the first delivery arriving this week as refiners moved to shore up supplies amid the West Asia war, according to a statement by the India’s Petroleum Ministry on social media on 4 April.
“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran,” the Petroleum Ministry stated.
The ministry added that there is “no payment hurdle for Iranian crude imports,” rejecting reports that a cargo meant for India was diverted to China because of settlement problems, saying the claims were “factually incorrect.”
This marks New Delhi’s first official acknowledgment that Iranian crude is re-entering India’s supply chain after imports halted nearly seven years ago, in May 2019, when renewed US sanctions targeted Iran’s energy sector, including “foreign corporations that invest in it and entities that buy, sell, or transport Iranian oil.”
The change follows Washington’s 21 March waiver covering Iranian crude supposedly already loaded on tankers, though Iranian officials denied that such a stock existed, calling the waiver a “psychological ploy” aimed at manipulating global prices.
The waiver did, however, open the door for India to make the purchase, with the government confirming that the LPG vessel ‘Sea Bird,’ carrying about 44,000 tonnes of Iranian cargo, berthed at Mangalore on 2 April and “is currently discharging.”
For India, that made this the first physical delivery tied to the renewed opening.
Officials said the tanker’s diversion was due to trade optimization, noting that cargoes can change destination mid-voyage and that such shifts are not uncommon in current market conditions.
They added that “India’s crude oil requirements remain fully secured for the coming months.”
At least a limited number of countries have been allowed to send vessels through the Strait of Hormuz since the US-Israeli war began, after Iran effectively seized control of the waterway and restricted traffic to “non-hostile” states only.
Tehran is now enforcing a controlled transit system, often described as a “tollbooth,” requiring ships to undergo vetting and, in many cases, pay fees in yuan or cryptocurrency for escorted passage.
Economists estimate the system could generate tens of billions of dollars annually for Iran, as it leverages its control over one of the world’s most critical oil chokepoints to reshape both energy flows and regional power dynamics.