Everyone Seeking Safety, Indian Giant Suddenly Buys Up Iranian Oil
A surprising development has emerged in Asia’s energy sector as Indian companies begin to eye Iranian oil again following the US easing of sanctions. Reliance Industries, the operator of the world’s largest refining complex, has reportedly bought 5 million barrels of crude oil from Tehran, marking the first major transaction since imports were halted in 2019.
According to Reuters on Tuesday (24/3/2026), three sources familiar with the matter stated that Reliance made the purchase just days after Washington temporarily lifted sanctions on Iranian oil. Two sources indicated that the Indian refinery bought the oil from the National Iranian Oil Company.
One source said the oil was priced at a premium of around US$7 per barrel compared to the ICE Brent futures contract. However, it is unclear when the oil delivery will take place.
In recent years, Iranian oil has mostly been purchased by independent refineries in China. The oil is often relabelled as originating from other countries to evade trade restrictions.
The Trump administration last Friday issued a 30-day sanctions exemption for Iranian oil purchases already at sea. The exemption applies to oil loaded onto any vessel, including sanctioned tankers, on or before 20 March and unloaded no later than 19 April.
This deal represents India’s first purchase of Iranian oil since the country, the world’s third-largest oil importer and consumer, stopped imports from Tehran in May 2019. The halt occurred several months after Washington reimposed sanctions on Iran.
The purchase also follows Indian refineries accumulating more than 40 million barrels of crude oil from Russia, after the US announced a temporary sanctions exemption this month to ease supply shortages.
Several sources said other refineries in Asia, including Indian state-owned companies, are examining the possibility of making similar purchases. However, Asia’s largest refinery, Sinopec, has no plans to buy Iranian oil, according to a senior executive of the Chinese state-owned company on Monday.