India turns to Tehran for oil amid Middle East turmoil

India announced on Saturday that it has resumed oil imports from Iran, ending a seven-year gap in energy trade between the two nations. The decision comes as ongoing hostilities in the Middle East continue to disrupt global energy supplies, particularly affecting Asian markets that rely heavily on Gulf crude. New Delhi had stopped purchasing Iranian oil in 2019 after the United States declined to renew sanctions waivers previously granted to eight major buyers.

Energy security drives policy shift

India's Ministry of Petroleum and Natural Gas confirmed the development in a post on social media platform X, stating that Indian refiners have successfully secured their crude requirements – including from Iran – and that there are no payment hurdles for Iranian crude imports. The ministry emphasized that India imports oil from more than 40 countries, with companies enjoying full flexibility to source crude from different geographies based on commercial considerations. Officials added that the country's crude oil requirements remain fully secured for the coming months.

US waiver and regional context

Last month, Washington granted a 30-day waiver on sanctions for Iranian oil purchases, creating the legal space for India to re-enter the Iranian market. According to the latest available data, India sources nearly 50 percent of its energy supplies – worth approximately $180 billion in 2024 – from the Middle East. The resumption of Iranian imports offers New Delhi additional bargaining power and supply diversification at a time when regional instability threatens traditional supply routes.

Conflict drives energy volatility

The US and Israel launched a joint air offensive against Iran on February 28, which has so far killed more than 1,340 people, including then-supreme leader Ayatollah Ali Khamenei. Tehran has retaliated with drone and missile strikes targeting Israel as well as Jordan, Iraq, and Gulf nations hosting US military assets, causing casualties and infrastructure damage while disrupting global markets and aviation. At least 13 US service members have been killed in the conflict. The fighting has driven up energy prices and severely affected shipping through the Strait of Hormuz, a critical chokepoint through which a significant portion of global oil shipments passes. Türkiye, which maintains diplomatic and trade ties with both India and Iran, continues to monitor the situation closely while advocating for regional stability and uninterrupted energy flows.