Irony of Iran war: India gets oil from Tehran first time in 7 years

It is a war of absurdities and ironies. America's objectives in its war with Iran have shifted quietly, and India, once forced to abandon Iranian oil under US sanctions, is once again turning to Tehran. A foreign-flagged tanker carrying nearly 6 lakh barrels of Iranian crude is expected to dock at Vadinar in Gujarat's Deendayal Port by April 4. This would be India's first direct shipment from Iran since May 2019, when New Delhi halted imports in compliance with tightened sanctions.

Real-time data from Kpler's MarineTraffic shows the Eswatini-flagged crude oil tanker Ping Shun is heading towards India.

This is a significant shift in India's energy sourcing, even as New Delhi has again shifted to discounted Russian crude that once invited US President Donald Trump's tariffs.

Trump had charged that India's heavy buying of Russian oil was directly fuelling the Ukraine war. He insisted New Delhi was helping finance Moscow's campaign and warned that such trade was unacceptable, even as he threatened punishing tariffs on Indian exports last year.

India is turning back to Tehran even as the US-led military actions against Iran have disrupted shipping through the Strait of Hormuz.

Bizarrely, as the conflict escalated, the focus of the war has shifted to opening the Strait, which was open before the strait.

As of Wednesday, the closure of the Strait of Hormuz has stranded at least 10 foreign tankers and 18 Indian vessels, with about half carrying energy supplies meant for India, on the western side of the waterway.

SANCTIONS ON IRAN, TARIFFS OVER RUSSIAN OIL, AND INDIA'S DIVERSIFICATION

The US first reimposed sweeping sanctions on Iran after withdrawing from the 2015 Joint Comprehensive Plan of Action (JCPOA), the nuclear deal aimed at curbing Tehran's nuclear programme in exchange for sanctions relief.

Washington cited concerns over Iran's nuclear ambitions, ballistic missile development and support for regional proxies. The "maximum pressure" campaign targeted Iran's energy sector, making it risky for third countries to buy Iranian oil without facing secondary sanctions.

India, which had long relied on Iranian crude for its refineries due to compatible grades, favourable credit terms and geographic proximity, stopped imports after the US waiver expired in May 2019. In 2018-19, India imported around 23-24 million tonnes of Iranian crude annually, accounting for roughly 10-12% of its total oil imports in peak years before the full squeeze. By 2019-20, that had crashed to about 2 million tonnes, and then to zero.

To fill the gap, India diversified aggressively. It ramped up purchases from Saudi Arabia, Iraq, the UAE, the US, and others.

Then came Russia's invasion of Ukraine in 2022. Discounted Russian crude became a lifeline. Russia's share in India's oil imports, which was negligible, under 2%, before the war, surged to peaks of 35-40% in 2024-25, with volumes often exceeding 1.5-2 million barrels per day (bpd) at times.

Even in early 2026, despite a dip to around 1-1.2 million bpd in January-February, Russia remained a top supplier.

When the US caused the tensions in the Middle East, Indian refiners turned to Russia again, securing additional cargoes after reported US waivers aimed at easing supply shortfalls globally.

ABSURDITIES IN THE WAR IN IRAN

The current war has thrown up several such absurdities.

Trump, whose administration's actions seemed closely aligned with Israeli security priorities, has lately signalled a willingness to wind down US involvement before even opening the Strait.

Trump has yet again shifted the goalpost from "securing the waterway" responsible for global energy supplies to a quicker exit.

Trump has publicly told allies to "go get your own oil" and said securing the strait is "not for us".

Amid such absurdities, India moving to Iranian shipments feels almost natural.

The incoming cargo of 6 lakh barrels is modest, but it signals that commercial logic and energy security are often above Trump's yapping.

India, which imports around 85% of its crude oil needs, must maintain affordable and reliable supplies is critical for its economy, refineries and millions of households that depend on subsidised cooking gas and fuel. The war has already strained LPG and LNG imports.

India is doing what it has always done — putting energy security and affordability first, without needing any external approval, despite the US suggesting it had "allowed" India to buy Russian oil.

- Ends

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