India's Iranian Oil Imports Halted as US Waiver Expires

India's temporary resumption of Iranian oil imports has ceased as the United States waiver permitting these purchases expired without indication of renewal. This waiver had allowed India to import crude oil for the first time since 2019, a period coinciding with the Strait of Hormuz closure. With the waiver's expiration, India will revert to its previous purchasing strategy, which did not include Iranian crude.

Meanwhile, Japanese companies are preparing for a protracted recovery of supply chains and anticipate sustained higher prices and reduced product packaging following the U.S.-Iran peace deal. Nearly half of these firms believe it will take more than six months to return to pre-conflict operational norms. They cite significant damage to supply chains and ongoing concerns regarding oil procurement as key factors contributing to this outlook.

In a separate but related development concerning energy security, India has announced plans to substantially expand its strategic petroleum reserves. This expansion includes a new reserve site at Mangaluru, with an estimated investment of $1.6 billion. The move is intended to strengthen India's energy security in the wake of recent supply disruptions and notable price increases.