First Iranian Crude Reaches India in 7 Years via U.S. Waiver
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- Two Iranian tankers carrying 4 million barrels of crude arrived in India, the first Iranian crude shipment to the country since 2019, per Bloomberg
- A U.S. sanctions waiver on Iranian oil made the shipment possible, granted to ease a global supply shortage caused by the war between the U.S. and Israel and Iran
- Iran closed the Strait of Hormuz to all vessels except its own and those of "friendly" countries, constraining India's crude supply from Middle Eastern producers who account for about half of all Indian purchases
- India halted Iranian crude imports in 2019 to comply with U.S. sanctions on Tehran's energy industry; its Ministry of Petroleum and Natural Gas says it now sources from more than 40 countries
- China has continued buying Iranian crude unobstructed, with at least two teapot refiners paying premiums of $1.50 to $2 per barrel above Brent for Iranian Light this month, per Reuters traders
- India and China would both face a supply squeeze if the U.S. proceeds with a blockade of the Gulf of Oman in retaliation for Iran's Strait of Hormuz closure
Why it matters: The first Iranian crude arrival in India in seven years — enabled by a U.S. sanctions waiver — reopens a flow the U.S. itself shut down in 2019. With roughly half of India's crude coming from the Middle East and the Strait of Hormuz closed, New Delhi is more exposed to U.S. policy decisions on Iran than at any point in years.
Ask SkimNews
