India Reignites Iranian Crude Imports Amid U.S. Sanctions Waiver

India is set to receive its first cargo of Iranian crude oil since 2019, as a vessel, Ping Shun, carrying 600,000 barrels is bound for Gujarat. This follows a temporary waiver on U.S. sanctions, reviving Indo-Iranian oil trade. Payment mechanisms remain uncertain due to Iran's SWIFT disconnection.

India is set to receive its first cargo of Iranian crude oil since 2019, as the ship Ping Shun heads to Gujarat, signaling a potential revival in Indo-Iranian oil trade. Ship tracking data indicates this significant move following a newly granted 30-day U.S. sanctions waiver on Iranian oil 'on water' due to regional conflicts.

The Ping Shun, carrying 600,000 barrels of crude, marks a critical juncture for Indian refiners who are grappling with dwindling inventories. While the buyer remains unidentified, the cargo's destination is Vadinar, a strategic oil hub for Russian-backed Naraya Energy and other hinterland refineries like BPCL's Bina refinery.

Historically a major buyer of Iranian crude due to refinery compatibility, India ceased imports in 2019 following sanctions. Now, with 95 million barrels of Iranian oil afloat, India's oil ministry evaluates the feasibility of resuming trade amid uncertainties in payment mechanisms, as Iran remains cut off from the SWIFT financial network.

(With inputs from agencies.)