India makes first Iranian oil buy in seven years with no payment problems

Indian refiners have purchased Iranian oil amid the Middle East conflict that has disrupted supplies through the Strait of Hormuz, the oil ministry said on Saturday.

The world’s third-biggest oil importer and consumer, India has not received a cargo from Tehran since May 2019, following U.S. pressure not to buy Iranian crude, but supply disruptions from the U.S.-Israel war have hit the South Asian nation hard.

“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports,” the oil ministry said on X.

Last month, the United States temporarily removed sanctions on Iranian oil and refined products to ease supply shortages.

India diesel exports to SE Asia hit 7-year high in March due to Iran war, data shows

India has secured its full requirements of crude oil for the coming months, the ministry added.

“India imports crude oil from 40-plus countries, with companies having full flexibility to source oil from different sources and geographies based on commercial considerations.”

India has also bought 44,000 metric tons of Iranian liquefied petroleum gas loaded on a sanctioned vessel. The ministry said the vessel, which berthed at the western port of Mangalore on Wednesday, is discharging the fuel.