Based on a report by Bloomberg, India has received shipments of Iranian oil for the first time in seven years, with around four million barrels arriving just days before a US grace period allowing such imports is set to expire.

The move highlights India’s urgency in securing crude supplies amid global energy disruptions and impending restrictions on Iranian exports.

The Jaya, a very-large crude carrier fully loaded with Iranian crude, is currently discharging its cargo at Paradip on India’s east coast. At the same time, the Felicity is unloading at Sikka on the west coast. 

Both vessels are sanctioned by the United States for their involvement in the Iranian oil trade and are expected to depart India by Friday, according to port reports and ship-tracking data from Kpler and Vortexa. Indian Oil Corporation, which operates Paradip, and Reliance Industries along with Bharat Petroleum Corporation, which use Sikka, have not yet commented on the deliveries.

India, heavily reliant on imports and sensitive to price fluctuations, has been significantly affected by the upheaval in global energy flows since US and Israeli strikes on Iran began in late February.

To manage the situation, New Delhi has taken advantage of temporary waivers granted by Washington, which allowed purchases of previously restricted Russian and Iranian crude. The waiver for Russian oil has already expired, and the one covering Iranian shipments will lapse within days unless renewed.

India had rapidly increased purchases of Russian oil last year, but refiners have faced greater challenges in securing and paying for Iranian cargoes due to financial sanctions that remain in place.

Earlier this month, India confirmed it would source crude from Iran among other suppliers as it navigates the current energy crunch. The arrival of the Jaya and Felicity indicates that refiners have managed to find a workaround despite the sanctions.

Another Iranian-owned tanker, the Derya, is currently stationed off India’s west coast, fully laden with crude. The vessel had loaded at Iran’s main export terminal, Kharg Island, in late March but may have missed the US waiver cutoff. It is now broadcasting that it is “awaiting orders,” a signal that it has no clear port of call at present.

This development underscores India’s balancing act between securing affordable energy supplies and navigating the complexities of international sanctions, as the US blockade threatens to cut off two million barrels a day of Iranian oil from the global market.

Bloomberg