Key facts
- India's temporary resumption of Iranian oil imports has ended as the US waiver expired.
- The US had granted a 30-day waiver in early March to allow India to buy Iranian crude.
- This waiver was intended to alleviate energy price pressures caused by Iran's actions in the Strait of Hormuz.
- India imported approximately four million barrels of Iranian crude during the waiver period.
- The expiry means India will cease Iranian oil imports and return to its pre-war purchasing strategy.
- Two Indian vessels were fired upon by Iranian gunboats while attempting to transit the Strait of Hormuz.
India's temporary return to importing Iranian oil has concluded as a 30-day US waiver expired without renewal, forcing New Delhi to cease purchases for the first time since 2019. The waiver, granted in early March amid the closure of the Strait of Hormuz, had allowed India to import approximately four million barrels of crude, with an additional four to six million barrels in transit.
The US Treasury Department had issued the exemption to alleviate energy price pressures exacerbated by Iran's actions in the vital shipping lane, through which a significant portion of global oil and gas passes. US Treasury Secretary Scott Bessent described the waiver as a "stopgap measure" intended to counter Iran's attempts to "take global energy hostage" and noted India as an "essential partner" expected to increase US oil purchases instead.
Historically, India was a major buyer of Iranian crude before US sanctions were imposed in 2018. Iranian oil's suitability for Indian refineries and the minimal operational adjustments required made its return attractive. Indian Oil Corporation was among the state-run entities that purchased Iranian crude under the waiver.
However, Iran's oil ministry had previously stated that it had no floating crude or surplus available for international markets, contradicting the US waiver and suggesting the move was aimed at managing market sentiment. Despite the waiver's expiry, Iran is estimated to hold a substantial floating reserve of crude oil.
The situation remains precarious for Indian shipping, as two Indian-flagged vessels, the Sanmar Herald and Bhagya Lakshmi, reportedly came under fire from Iranian gunboats while attempting to transit the Strait of Hormuz, despite having prior clearance.