India Eyes Iran Crude as US Sanctions Loom

Indian refiners are exploring options to import Iranian crude oil as a critical US sanctions waiver is set to expire on April 19, 2026. Reliance Industries has requested government authorization to receive Iranian crude on four specific vessels, aiming to ensure compliance with US restrictions and Indian laws. This proactive step follows a significant increase in Russian oil purchases by Indian refiners after earlier US waivers were granted. Last month, India imported approximately 1.9 million barrels of Russian crude daily, a substantial rise from about 1.1 million barrels per day in February 2026.

Despite previous attempts, importing crude from Iran has been challenging due to concerns over suppliers and payment mechanisms tied to sanctions, with no imports since 2019. However, recent supply constraints, exacerbated by disruptions in the Strait of Hormuz, have prompted India's oil ministry to confirm ongoing purchases of oil and liquefied petroleum gas from Iran. Reliance, which previously secured a US general license to import Venezuelan crude, has seen its Russian crude volumes decrease following EU restrictions on fuels derived from Russian crude.