US Blockade Threat Looms as India Receives Iranian Oil After Seven Years
Tankers Reach Gujarat and Odisha Ports
India has received two shipments of Iranian crude oil, marking the first such deliveries in nearly seven years. According to ship tracking data from LSEG, two very large crude carriers (VLCCs) reached Indian ports amid rising geopolitical tensions.
The Iran-flagged VLCC Felicity docked at Sikka port in Gujarat, while the Curacao-flagged tanker Jaya arrived near Paradip port in Odisha. Each vessel is estimated to carry around two million barrels of crude oil.
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Deliveries Timed Ahead of US Strait Blockade
The shipments arrived shortly before the United States announced plans to block Iranian vessels from entering or leaving the Strait of Hormuz. The move follows the collapse of US-Iran ceasefire talks held in Islamabad.
The blockade is scheduled to be enforced from Monday at 10 am ET (7:30 pm IST). The US military stated that the action would be applied impartially to vessels accessing Iranian ports and coastal facilities, including areas in the Arabian Gulf and Gulf of Oman.
Temporary Waiver Enables Limited Imports
India’s receipt of Iranian crude has been facilitated by a temporary US waiver that allows refiners to resume purchases for a limited period. The exemption is aimed at stabilising global oil prices during the ongoing Iran-related conflict.
However, the waiver is set to expire on April 19, creating uncertainty over future imports. The current arrangement permits the sale of oil already in transit rather than fresh contracts.
Indian Refiners Resume Purchases
Indian Oil Corporation has procured crude carried by the tanker Jaya, despite the vessel being under US sanctions. Reliance Industries Ltd has also been permitted to source Iranian oil transported via sanctioned and ageing tankers, including Felicity.
The Felicity, operated by the National Iranian Tanker Company, loaded crude at Kharg Island in mid-March and later anchored near Sikka. The Jaya lifted its cargo in late February, before tensions escalated further in the region.
Background: Halt Since 2019 Sanctions
India had stopped importing Iranian crude in May 2019 following tightened US sanctions. Before that, Iran was among India’s key suppliers, with imports peaking at over 5 lakh barrels per day in 2018, accounting for more than 11 per cent of total crude imports.
Since then, India has diversified sourcing to suppliers in the Middle East, the United States and other regions.
Rising Tensions and Market Uncertainty
The current developments come amid escalating tensions between the US and Iran. Iran has warned that no port in the Persian Gulf or Sea of Oman would remain safe if its own facilities are targeted.
The failed ceasefire talks and the proposed blockade have raised concerns over global oil supply disruptions, contributing to volatility in energy markets.