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India’s first shipment of Iranian crude oil since 2019 is likely headed towards the Gujarat coast, according to ship-tracking data, following a temporary sanctions waiver by the United States.

Commodity analytics firm Kpler said the vessel Ping Shun is en route to Vadinar carrying approximately 600,000 barrels of Iranian crude, marking the first such delivery since May 2019.

“The Indo-Iranian oil trade has flickered back to life,” said Sumit Ritolia, Lead Research Analyst at Kpler, adding that the shipment comes at a time when Indian refiners are facing tightening inventories.

Shipment details and destination

The tanker, which loaded crude from Kharg Island in early March, is estimated to reach Vadinar on 4 April.

Vadinar houses a refinery operated by Nayara Energy, backed by Russian oil major Rosneft. The port also serves as a supply point for inland refineries such as the Bina facility of Bharat Petroleum Corporation Limited (BPCL).

The identity of the buyer of the cargo has not been disclosed.

Policy context and sanctions waiver

The development follows a decision by the US administration to allow a 30-day window for the purchase of Iranian oil already at sea, aimed at easing global oil prices amid the ongoing West Asia conflict.

The waiver, which expires on 19 April, has opened a limited opportunity for countries such as India to access Iranian crude after years of restrictions.

India’s oil ministry has maintained that any decision to resume imports will be based on techno-commercial viability.

Halt in imports

India had stopped importing Iranian oil in May 2019 after the United States ended sanctions waivers for buyers.

Before that, Iran was among India’s major crude suppliers, accounting for up to 11.5 per cent of total imports at its peak.

India weighs return to Iranian oil as supply crunch deepens

India imported about 518,000 barrels per day of Iranian oil in 2018, which declined to around 268,000 barrels per day between January and May 2019 before shipments ceased.

Indian refiners had traditionally sourced Iran Light and Iran Heavy crude grades due to their compatibility with domestic refinery configurations and favourable pricing terms.

Inventory and market dynamics

According to Kpler, around 95 million barrels of Iranian oil are currently stored on vessels at sea, of which nearly 51 million barrels may be suitable for Indian refiners, with the remainder likely destined for markets such as China and Southeast Asia.

The arrival of Iranian crude comes amid rising global oil prices and supply uncertainties linked to geopolitical tensions in West Asia.

Despite the waiver, uncertainties remain over payment mechanisms.

Iran continues to be excluded from the SWIFT (Society for Worldwide Interbank Financial Telecommunication), which facilitates international financial transactions.

Earlier, India had routed payments for Iranian oil through European currencies using intermediary banks, including Turkish institutions, but those arrangements are no longer available.

Iran was first cut off from SWIFT in 2012 following European Union sanctions over its nuclear programme, with further restrictions imposed in 2018 after the United States reintroduced sanctions.

These measures have limited Tehran’s ability to receive payments and access global financial systems.

The shipment marks a potential reopening of Indo-Iranian energy trade, though its continuity will depend on geopolitical developments, the expiry of the US waiver and the resolution of payment-related constraints.

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