The Liberia-flagged tanker Shenlong Suezmax, loaded with Saudi Arabian crude, arrives at a port after transiting the Strait of Hormuz amid supply disruptions linked to the U.S-Israeli conflict with Iran, in Mumbai, India, March 12, 2026. REUTERS/Francis Mascarenhas
By Rakesh Sharma and Mihir Mishra
Apr 4, 2026 (Bloomberg) —India is buying crude from Iran among other countries in order to navigate the current energy crisis, the country’s oil ministry said, denying payment hurdles were impeding those purchases.
The statement is a rare public recognition of energy ties that India largely abandoned as a result of US sanctions, but has begun to rekindle thanks to the current conflict and a subsequent Washington waiver allowing purchases of seaborne Iranian crude. The refining industry has been grappling with trading, shipping and banking arrangements, as Tehran remains under restrictive sanctions.
“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran,” the ministry said in a statement on X. There was “no payment hurdle for Iranian crude imports, contrary to the rumours being circulated.”
The ministry also denied reports that an Iranian crude vessel was diverted from Vadinar, India, to China because of payment troubles, adding vessel destinations are often indicative.
It confirmed, however, the arrival of Iranian liquefied petroleum gas, with an LPG vessel carrying around 44,000 tons currently discharging in Mangalore, according to the statement.
India has been severely impacted by the month-long war in the Persian Gulf and particularly by the effective closure of the Strait of Hormuz. Until recently, the world’s third-largest oil importer relied on the Middle East for roughly half of its crude oil and the majority of its LPG, used for cooking.
India became a major buyer of seaborne Russian crude after the invasion of Ukraine in 2022, but its refiners have typically stayed away from blacklisted oil from Venezuela or Iran, wary of getting tangled in US sanctions.
Since the start of the conflict, India has negotiated with Iran to allow the safe passage of vessels previously stuck in the Persian Gulf.
© 2026 Bloomberg L.P.
Updated: May 27, 2026 (Originally published April 4, 2026)
This article contains reporting from Bloomberg, published under license.
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A cargo of oil from the U.S. Strategic Petroleum Reserve headed to California this month for the first time ever, ship tracking service Kpler said.
The world may need to find a way to get by on less oil and gas if the Strait of Hormuz remains closed much longer dueto the U.S.-Israeli war on Iran, Dallas Federal Reserve President Lorie Logan said on Wednesday.
Iran said the United States had violated a ceasefire after the U.S. conducted what it called defensive strikes in southern Iran, while U.S. Secretary of State Marco Rubio said negotiating a deal to halt the conflict could "take a few days."
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