Iran Oil Back in Focus as Indian Refiners Explore Purchases Amid War

A temporary easing of US sanctions on Iranian oil has opened a narrow window for Indian refiners, who are now exploring the possibility of resuming crude purchases amid ongoing tensions in the Middle East.

Sources indicate that several refiners in India are keen to tap into Iranian supplies but are waiting for clear guidance from the Government of India and further details from United States authorities, particularly on payment mechanisms and compliance rules.

The development follows a decision by the US to temporarily lift sanctions on Iranian oil that is already in transit. Scott Bessent said the move is aimed at easing global supply pressures by allowing around 140 million barrels of stranded Iranian crude to enter the market. However, he clarified that the authorisation is strictly limited and does not permit new production or fresh purchases.

For Indian refiners, the timing is significant. With relatively smaller crude stockpiles compared to other major Asian importers, they had recently rushed to secure Russian oil after earlier relaxations. Now, Iranian oil presents another potential supply option, though uncertainties remain.

Global oil markets have been highly volatile since the outbreak of the Iran conflict, with Brent crude prices swinging sharply-from around $70 per barrel before the crisis to nearly $120 this week. The temporary release of Iranian oil is expected to ease some of this pressure, at least in the short term.

The sanctions relief, which began on Friday, will remain in effect until April 19. US officials have emphasised that the measure is designed as a short-term intervention to stabilise prices and does not signal a broader shift in policy. They also noted that Iran will face restrictions in accessing the revenue generated from these sales.

As global buyers, including other Asian refiners, assess the opportunity, the move highlights how geopolitical tensions and policy shifts continue to reshape energy trade flows and pricing dynamics worldwide.