India Eyes Iranian Oil: Potential Resumption Amid Sanction Waiver

India is contemplating the resumption of Iranian oil imports, as a temporary waiver on US sanctions presents a potential avenue to ease escalating oil prices amidst the US-Israeli conflict. Historically, India has been a significant buyer of Iranian crude, benefiting from refinery compatibility and favorable commercial conditions.

Post-sanctions in 2018 led India to halt imports by May 2019, replacing Iranian volumes with Middle Eastern, US, and other alternatives. During its peak, Iranian oil constituted 11.5% of India's total imports. According to Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, the decision to re-engage with Iranian crude hinges on techno-commercial feasibility.

Current barriers include Iran's disconnect from the SWIFT network, complicating payment processes. However, with an estimated 140-170 million barrels available at sea, Indian refiners, familiar through past dealings, could swiftly reintegrate these resources if favorable conditions align.