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India resumes Iran crude imports after seven-year gap, boosting oil supplies

The Ministry of Petroleum and Natural Gas on Saturday said there are no disruptions in supply or payment mechanisms.

Dhanam News Desk

Amid escalating tensions in West Asia, the Centre has said that crude oil requirements for the coming months are fully secured. The reassurance comes as the country quietly resumes imports from Iran after a gap of nearly seven years.

The Ministry of Petroleum and Natural Gas on Saturday said there are no disruptions in supply or payment mechanisms, including for Iranian crude, countering speculation triggered by geopolitical tensions and reports of shipment diversions.

Iran oil returns amid supply shock

Indian refiners have purchased Iranian crude for the first time since 2019, when imports were halted following US sanctions. The resumption follows a temporary easing of restrictions by Washington to address supply shortages arising from the ongoing conflict in West Asia.

  • India had not imported Iranian oil since May 2019

  • Recent geopolitical tensions disrupted supplies through the Strait of Hormuz

  • Temporary sanction relief enabled limited resumption of trade

Officials said refiners acted swiftly to secure supplies from multiple sources, including Iran, to cushion the impact of global disruptions.

No payment hurdles

The government dismissed reports suggesting difficulties in settling payments for Iranian crude, stating that financial transactions are proceeding smoothly.

It also rejected claims that an Iranian cargo from Vadinar was diverted to China due to payment issues, calling such reports “factually incorrect”.

  • Payments for Iranian oil are being processed without obstacles

  • Cargo diversions are routine in global oil trade

  • Destination changes often reflect commercial and logistical optimisation

Authorities noted that Bills of Lading typically indicate tentative discharge ports and may change during transit depending on operational considerations.

Diversified sourcing

India continues to import crude from more than 40 countries, giving refiners flexibility to adjust sourcing strategies based on price, availability and geopolitical risks.

This diversified sourcing has helped India navigate the current volatility in global oil markets, particularly disruptions linked to the Strait of Hormuz — a critical artery for global energy shipments.

LPG supplies `stable'

The government also addressed concerns around liquefied petroleum gas (LPG) availability, confirming that supplies remain uninterrupted.

  • About 44,000 tonnes of Iranian LPG recently arrived in Mangalore

  • The cargo is currently being discharged

  • Reports of LPG shortages were termed inaccurate

Reassurance amid volatility

The government’s statement aims to calm markets and consumers amid rising concerns over energy security as the West Asia conflict intensifies. By securing supplies and reopening a key source like Iran, India appears to be reinforcing its strategy of flexibility and diversification in crude sourcing.

With global oil flows under pressure, the ability to quickly tap alternative suppliers — and manage payments seamlessly — is emerging as a critical advantage for the world’s third-largest oil importer.

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