Kamal Ghorui
As the US temporarily eases sanctions on Iranian oil imports, Indian refiners are eyeing a resumption of crude purchases from Tehran.According to Reuters, several Indian refining companies are awaiting government direction and clarification from Washington on payment terms before finalising shipments.
Indian refiners who maintain relatively smaller crude stockpiles compared with other major Asian buyers have been exploring options to add Iranian crude to their supply mix since Washington granted a temporary waiver on sanctions. The waiver is valid for 30 days. It is part of broader efforts to ease an energy crunch caused by disruptions in Middle East oil flows amid the US-Israel conflict with Iran.The waiver, outlined by US Treasury Secretary Scott Bessent, covers oil loaded on or before March 20 and discharged by April 19, including cargo on previously sanctioned vessels. This is the third temporary waiver since the start of the ongoing US-Israel war with Iran, designed to ease an acute energy crunch in Asia caused by disruptions in Middle East oil flows.
Millions of barrels waiting at sea
According to consultancy Kpler, about 170 million barrels of Iranian crude are estimated to be in transit, stretching from the Middle East Gulf to waters near China. Asia relies on the Middle East for around 60% of its crude needs. The disturbances in shipments via the Strait of Hormuz have forced many refineries to cut runs and scale back exports.Energy Aspects estimates roughly 130–140 million barrels at sea, representing less than two weeks’ worth of Middle East production losses.With sanctions temporarily lifted, India and other Asian buyers are exploring opportunities to stabilise supplies.A Singapore‑based trader highlighted that it may take time to work through administrative, banking and regulatory hurdles before cargoes can be confirmed for delivery.The temporary waiver does not authorise new Iranian crude production to be exported, but rather covers purchases of oil already loaded onto vessels by the cutoff date. Before sanctions were reimposed, major buyers of Iranian crude included China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey.Indian refiners have recently turned to alternative sources such as Russian and West African crude to mitigate supply shocks, as disruptions to Middle Eastern exports have tightened markets and pushed up benchmark prices.The potential return to Iranian oil, if formalised with clear guidance from New Delhi and Washington, could help stabilise supply for the world’s third‑largest crude importer.
