India has resumed the purchase of Iranian crude oil and liquefied petroleum gas (LPG) after a nearly seven-year hiatus, citing a need to secure energy supplies amid escalating Middle East conflicts. The Ministry of Petroleum and Natural Gas confirmed on Saturday that Indian refiners have successfully contracted shipments from Tehran, noting that previous payment hurdles have been resolved.

The world’s third-largest oil consumer had not received Iranian cargo since May 2019, following the imposition of stringent U.S. sanctions. However, recent disruptions in the Strait of Hormuz and supply shortages stemming from the U.S.-Israel conflict have prompted a shift in procurement strategy. Donald Trump Warns Iran: US President Gives Fresh 48-Hour Ultimatum to Open Strait of Hormuz, Says ‘All Hell Will Rain Down’.

Sanction Relief Facilitates Energy Imports

The resumption of trade follows a decision by the United States last month to temporarily lift sanctions on Iranian oil and refined products. This move was intended to ease global supply constraints that have seen energy prices fluctuate significantly in recent weeks.

The Ministry stated on X (formerly Twitter) that Indian refiners have now secured their full crude oil requirements for the coming months. "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 statement read.

Diversification of Supply Sources

Despite the return to Iranian markets, the government emphasised that its energy strategy remains diversified. India currently imports crude oil from over 40 countries, allowing domestic companies the flexibility to source fuel based on commercial viability and geographic stability.

In addition to crude oil, India has also accepted a shipment of 44,000 metric tons of Iranian LPG. The fuel was transported on a sanctioned vessel that berthed at the Port of Mangalore on Wednesday. The Ministry confirmed that the vessel is currently discharging its cargo to meet domestic heating and cooking gas demands.

Impact of Regional Geopolitics

The South Asian nation has been hit hard by supply chain volatility in the Middle East, which traditionally accounts for a vast majority of its energy imports. By re-engaging with Iran, India aims to mitigate the risks of high shipping costs and potential blockades in the Persian Gulf. Iran Grants Passage for Essential and Humanitarian Goods Through Strait of Hormuz.

The Petroleum Ministry maintains that these purchases are driven by "commercial considerations" and the necessity of maintaining a steady flow of energy for its growing economy. While the U.S. relief on sanctions is currently temporary, the move provides a critical buffer for Indian refiners facing a tightening global market.

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(The above story first appeared on LatestLY on Apr 04, 2026 11:36 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).