Commodities April 4, 2026

India resumes imports of Iranian crude as Middle East disruptions tighten supplies

Oil ministry says refiners have sourced Iranian crude and faces no payment hurdles as regional conflict affects shipments through the Strait of Hormuz

By Leila Farooq
India resumes imports of Iranian crude as Middle East disruptions tighten supplies

Indian refiners have taken delivery of Iranian oil for the first time since May 2019, the oil ministry said, as supply disruptions linked to the U.S.-Israel war and pressure on routes through the Strait of Hormuz strain global flows. The ministry added there is no payment obstacle for Iranian crude imports and that India has secured full crude requirements for the coming months.

Key Points

  • Indian refiners purchased Iranian crude for the first time since May 2019 amid supply disruptions through the Strait of Hormuz.
  • The oil ministry stated there is no payment hurdle for Iranian crude imports and that India has secured its full crude oil requirements for the coming months.
  • India received 44,000 metric tons of Iranian LPG loaded on a sanctioned vessel that berthed at Mangalore and is discharging cargo.

Overview

Indian refiners have purchased crude oil from Iran amid supply disturbances in the Middle East that have affected shipping through the Strait of Hormuz, the oil ministry announced on X. The ministry said the purchases come against a backdrop of supply pressure tied to the U.S.-Israel war and marked India’s first cargo from Tehran since May 2019, when U.S. pressure curtailed purchases of Iranian crude.

Ministry statement

In a post on X the oil ministry said: "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 ministry also said India had secured its full crude oil needs for the coming months.

Sanctions and payments

Last month, the United States temporarily removed sanctions on Iranian oil and refined products to help alleviate supply shortages. The ministry highlighted India’s sourcing flexibility, noting that "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."

Liquefied petroleum gas shipment

Separately, India has taken delivery of 44,000 metric tons of Iranian liquefied petroleum gas (LPG) that was loaded on a sanctioned vessel. The ministry said the vessel berthed at the western port of Mangalore on Wednesday and is discharging the fuel.

Context and implications

The ministry’s comments indicate that refiners have used the full range of sourcing options available to them to meet near-term crude requirements. The reference to the temporary U.S. sanction relief and the sanctioned vessel discharging LPG reflect a complex operating environment in which policy decisions and maritime statuses can affect supply routes and cargo handling.


Summary

Indian refiners have resumed purchases of Iranian oil amid Middle East supply disruptions and shipping pressure through the Strait of Hormuz. The oil ministry said there are no payment hurdles for Iranian crude and that India’s crude needs for the coming months are secured. India also received 44,000 metric tons of Iranian LPG on a sanctioned vessel now discharging at Mangalore.

Risks

  • Ongoing Middle East supply disruptions related to the U.S.-Israel war could continue to affect oil flows and shipping through the Strait of Hormuz - impacting energy and shipping sectors.
  • Changes to the temporary removal of U.S. sanctions on Iranian oil and refined products could alter supply availability and commercial arrangements - affecting refiners and commodities markets.
  • Handling of cargo on a sanctioned vessel introduces legal or logistical uncertainties while the vessel discharges LPG at port - impacting port operations and fuel supply chains.

More from Commodities

Taiwan Says Major LNG Supplier Has Pledged Continued Support Amid Middle East Conflict Apr 4, 2026 Southern Russia Hit by Drone and Missile Strikes; One Dead, Fires Reported on Ship and Shore Apr 4, 2026 Hunt Underway for Missing U.S. Pilot After Two Warplanes Downed Over Iran and Gulf Apr 4, 2026 Australians Urged to Keep Easter Plans as Fuel Strain Leaves Hundreds of Stations Offline Apr 3, 2026 U.S. Intelligence Sees Little Near-Term Chance Iran Will Relinquish Control of Strait of Hormuz Apr 3, 2026