Daijiworld Media Network – New Delhi

New Delhi, Mar 21: Indian refiners are preparing to resume purchases of crude from Iran after the United States issued a temporary waiver on sanctions, amid an ongoing energy crunch triggered by the US-Israeli conflict in the region, sources said.

According to industry inputs, refiners in India are awaiting formal directions from the government and clarity from Washington on key aspects such as payment mechanisms before proceeding with purchases.

The waiver, announced by US Treasury Secretary Scott Bessent, allows the purchase of Iranian oil already at sea for a limited 30-day window. It applies to shipments loaded on or before March 20 and discharged by April 19, as per the Office of Foreign Assets Control.

Sources indicated that Indian refiners, which maintain relatively smaller crude stockpiles compared to other Asian importers, have been actively exploring supply options after recent disruptions. Many had earlier rushed to secure Russian oil following easing of restrictions.

Across Asia, other refiners are also evaluating the feasibility of buying Iranian crude, although operational and financial challenges remain.

Market estimates suggest that between 130 million and 170 million barrels of Iranian oil are currently floating at sea, according to data from firms like Kpler and consultancy Energy Aspects. These volumes could provide short-term relief to supply-strained markets.

The development comes at a time when disruptions in the Strait of Hormuz have forced refineries across Asia to cut throughput, with the region relying on the Middle East for nearly 60 per cent of its crude supplies.

However, traders pointed out several hurdles, including uncertainty over payment channels and the use of aging “shadow fleet” tankers carrying Iranian oil. Compliance, banking, and administrative procedures could also delay transactions.

Prior to the reimposition of US sanctions in 2018, major buyers of Iranian crude included India, China, Japan, South Korea, Italy, Greece, Taiwan, and Turkey. Since then, China has remained the primary buyer, with independent refiners importing significant volumes at discounted rates.

Industry experts believe the waiver could unlock millions of barrels in the short term, but long-term trade will depend on geopolitical developments and clarity on sanctions policy.