Will Indian refiners buy Iranian crude oil after US sanctions waiver?, Pg9

Key Highlights:

• The US suspended sanctions on Iranian crude oil already loaded on tankers for one month to increase global oil supply.
• India last imported Iranian oil in 2019.
• The US general license authorizes transactions related to Iranian crude oil loaded on vessels as of March 20, 2026, until April 19, 2026.
• Around 140-170 million barrels of Iranian oil is estimated to be on water, according to industry experts.
• Approximately 2.5-2.7 million barrels per day (bpd) of India’s crude imports have transited the Strait of Hormuz recently.

Detailed Insights:

• Indian refiners will decide on purchasing Iranian crude oil based on techno-commercial feasibility.
• Iran and its banks remain outside the Society for Worldwide Interbank Financial Telecommunication (SWIFT), posing payment challenges for potential buyers.
• Over 90% of Iranian oil exports have been going to China for years.
• The conflict that began on February 28, 2026, has effectively halted vessel movement through the Strait of Hormuz, which accounts for one-fifth of global oil and LNG flow.
• India was a major buyer of Iranian crude, importing significant volumes until sanctions tightened in 2018, ceasing imports from May 2019.

Key Concepts Involved:

• Sanctions: Penalties imposed by one country on another, restricting trade and financial transactions.
• Techno-commercial feasibility: Evaluation of a project's viability based on technical and commercial factors.
• SWIFT: A global messaging network facilitating international financial transactions.