Indian refiners plan to resume buying Iranian oil, while others in Asia are considering similar purchases after Washington temporarily waived sanctions to ease an energy crunch caused by the US-Israeli war on Iran, Reuters reported.
Three Indian refining sources said that plans to buy Iranian oil are on hold pending government direction and clarity from the US on payment terms.
The US on Friday issued a 30-day waiver allowing the purchase of Iranian oil already at sea, Treasury Secretary Scott Bessent said. The relief applies to cargo loaded by March 20 and discharged by April 19, including shipments on sanctioned tankers, according to OFAC, this is the third such waiver since the war began.
Refiners in India, which has much smaller crude stockpiles than other big Asian oil importers, rushed to book Russian oil after the US recently lifted sanctions temporarily. The Indian government could not be immediately reached for comment outside office hours.
About 170 million barrels of Iranian crude are currently at sea, with tankers scattered from the Gulf to waters near China, Kpler’s Emmanuel Belostrino said. Energy Aspects estimated 130–140 million barrels in floating storage as of March 19. Asia, which relies on the Middle East for nearly 60 per cent of its crude, has been forced to cut refinery runs amid the near-closure of the Strait of Hormuz.
After US sanctions were re-imposed in 2018, China became Iran’s biggest buyer, with independent refiners importing about 1.38 million bpd last year, attracted by heavy discounts, Kpler data showed.
Other issues complicate buying
Payment uncertainty and the use of ageing shadow-fleet tankers could complicate purchases of Iranian crude, traders said. Some refiners were earlier bound by contracts with National Iranian Oil Co., though since US sanctions were re-imposed in 2018, a significant share of the oil has been sold via third-party traders.
A Singapore-based trader said compliance and banking processes may take time, though buyers are expected to move quickly. Apart from China, key pre-sanctions buyers included India, Japan, South Korea, Italy, Greece, Taiwan and Turkey.
