India has restarted oil and gas imports from Iran after a seven-year hiatus, prompted by supply disruptions and elevated energy prices resulting from the U.S.-Israel war on Iran [1]. According to energy intelligence firm Rystad Energy, these are India's first purchases from Iran since 2019 [1]. The Ministry of Petroleum and Natural Gas confirmed that Indian refiners have secured crude supplies from over 40 countries, including Iran, and denied any payment hurdles for Iranian crude. A vessel carrying 44,000 metric tons of Iranian liquefied petroleum gas (LPG) recently berthed at a southern Indian port [1].
Analysts suggest that India's renewed energy purchases from Tehran serve as a confidence-building mechanism and an 'insurance policy,' signaling that India does not intend to take sides in the ongoing conflict. In exchange, India expects Iran's cooperation to ensure the safe passage of Indian ships through the Strait of Hormuz, a critical route for about 50% of India's crude oil and most of its LPG imports [1].
Amitendu Palit, senior research fellow at the Institute of South Asian Studies, stated that India is buying oil from Iran following a U.S. waiver allowing such purchases. He noted that future imports will depend on whether sanctions on Iranian oil are reinstated and how the regional geopolitical situation develops [1]. Meanwhile, 17 Indian-flagged vessels are awaiting safe passage through the strait, and seven have crossed in recent weeks following diplomatic engagement with Tehran [1].
Despite India's historical ties with Iran, there is a growing public perception that New Delhi has tilted towards Washington since the start of the Middle East conflict. Reema Bhattacharya, head of Asia research at Verisk Maplecroft, commented that India's reliance on the U.S. as a dependable partner has been tested, and the country is likely to diversify partnerships beyond the current crisis [1]. Last week, U.S. President Donald Trump urged countries dependent on energy flows through the Strait of Hormuz to join a U.S.-led naval coalition to protect shipping, pledging U.S. support [1].
CONCLUSION
India's decision to resume oil and gas imports from Iran highlights its strategic balancing act amid regional tensions and supply disruptions. The move signals a diversification of energy partnerships and a cautious approach to U.S. alignment, with future imports contingent on geopolitical developments and sanctions. Market participants should monitor evolving diplomatic and security dynamics in the Strait of Hormuz for further implications.