Indian refiners eye Iranian oil after US waiver, but wait for clarity amid war-driven supply fears: Report
Indian refiners are considering a return to Iranian crude purchases after the US temporarily eased sanctions to stabilise global oil supplies disrupted by the ongoing West Asia conflict. However, companies are proceeding cautiously, awaiting government guidance and clarity on payment and compliance rules.
- Mar 21, 2026,
- Updated Mar 21, 2026 2:21 PM IST
India’s oil refiners are cautiously preparing to restart purchases of Iranian crude after the United States temporarily eased sanctions to calm global energy markets shaken by the ongoing U.S.–Israel conflict with Iran. The move has opened the door for several Asian buyers to consider returning to Iranian supplies, but companies say they are waiting for clear instructions from their governments and more clarity from Washington before taking any firm decision.
According to traders cited in a Reuters report, refiners in India have shown interest in buying Iranian oil, though payment channels, insurance cover and compliance rules remain uncertain. Officials at Indian refining companies said they would need guidance from the government, especially on how transactions would be settled without violating international regulations.
However, Iran has said it has no surplus crude available for global markets after the US Treasury Secretary indicated that Washington may ease sanctions on Iranian oil currently at sea. “Currently, Iran has virtually no surplus crude oil available, either in floating storage or for supply to international markets, and the US Treasury Secretary’s remarks appear mainly aimed at reassuring buyers,” Iranian Oil Ministry spokesman Saman Ghoddoosi said in a post on X.
Iranian crude
India’s interest in Iranian crude has grown as supply risks increased in recent weeks. The country maintains smaller emergency stockpiles compared to some other Asian importers, which makes it more vulnerable during disruptions. When sanctions on Russian oil were briefly relaxed earlier, Indian refiners quickly moved to secure additional cargoes to avoid shortages, highlighting how sensitive the system is to supply shocks.
The latest development follows a decision by the U.S. Treasury to grant a 30-day waiver allowing the sale of Iranian crude that is already at sea. The relaxation applies to cargoes loaded before March 20 and delivered by April 19, and is intended to ease pressure on global oil markets rather than fully restore Iranian exports. Analysts estimate that more than 100 million barrels of Iranian crude are currently stored on tankers across the West Asia and Asian waters, which could help offset short-term supply losses.
Asia's dependence on oil
Asia has been hit hardest by the disruption because the region depends on the West Asia for nearly 60% of its crude imports. Tensions around the Strait of Hormuz — a key shipping route — have forced some refiners to cut processing and reduce fuel exports, raising concerns about fuel prices and availability.
Before US sanctions were tightened in 2018, countries such as India, Japan, South Korea and several European nations were among the biggest buyers of Iranian oil. Since then, China has remained the primary customer, often purchasing at discounted prices.
However, uncertainty still surrounds logistics, payment systems and the use of older tankers linked to Iran’s so-called shadow fleet. Iran has also denied that it has large volumes available, saying recent U.S. statements appear aimed at calming markets rather than signalling a real supply surge.
With tensions still high, refiners are moving carefully, balancing the need for cheaper crude with the risk of sudden policy changes.
India’s oil refiners are cautiously preparing to restart purchases of Iranian crude after the United States temporarily eased sanctions to calm global energy markets shaken by the ongoing U.S.–Israel conflict with Iran. The move has opened the door for several Asian buyers to consider returning to Iranian supplies, but companies say they are waiting for clear instructions from their governments and more clarity from Washington before taking any firm decision.
According to traders cited in a Reuters report, refiners in India have shown interest in buying Iranian oil, though payment channels, insurance cover and compliance rules remain uncertain. Officials at Indian refining companies said they would need guidance from the government, especially on how transactions would be settled without violating international regulations.
However, Iran has said it has no surplus crude available for global markets after the US Treasury Secretary indicated that Washington may ease sanctions on Iranian oil currently at sea. “Currently, Iran has virtually no surplus crude oil available, either in floating storage or for supply to international markets, and the US Treasury Secretary’s remarks appear mainly aimed at reassuring buyers,” Iranian Oil Ministry spokesman Saman Ghoddoosi said in a post on X.
Iranian crude
India’s interest in Iranian crude has grown as supply risks increased in recent weeks. The country maintains smaller emergency stockpiles compared to some other Asian importers, which makes it more vulnerable during disruptions. When sanctions on Russian oil were briefly relaxed earlier, Indian refiners quickly moved to secure additional cargoes to avoid shortages, highlighting how sensitive the system is to supply shocks.
The latest development follows a decision by the U.S. Treasury to grant a 30-day waiver allowing the sale of Iranian crude that is already at sea. The relaxation applies to cargoes loaded before March 20 and delivered by April 19, and is intended to ease pressure on global oil markets rather than fully restore Iranian exports. Analysts estimate that more than 100 million barrels of Iranian crude are currently stored on tankers across the West Asia and Asian waters, which could help offset short-term supply losses.
Asia's dependence on oil
Asia has been hit hardest by the disruption because the region depends on the West Asia for nearly 60% of its crude imports. Tensions around the Strait of Hormuz — a key shipping route — have forced some refiners to cut processing and reduce fuel exports, raising concerns about fuel prices and availability.
Before US sanctions were tightened in 2018, countries such as India, Japan, South Korea and several European nations were among the biggest buyers of Iranian oil. Since then, China has remained the primary customer, often purchasing at discounted prices.
However, uncertainty still surrounds logistics, payment systems and the use of older tankers linked to Iran’s so-called shadow fleet. Iran has also denied that it has large volumes available, saying recent U.S. statements appear aimed at calming markets rather than signalling a real supply surge.
With tensions still high, refiners are moving carefully, balancing the need for cheaper crude with the risk of sudden policy changes.