India-Iran Oil Trade
Bilateral Energy Relationship
India was Iran's second-largest crude oil customer before US sanctions on Iran (imposed under the Trump administration's "maximum pressure" campaign from May 2018) forced India to halt purchases. India bought zero Iranian oil from 2019 to 2023. From FY24, India resumed some Iranian oil imports — primarily under barter/rupee arrangements — after partial diplomatic normalization. Iranian crude is attractive for India due to competitive pricing (typically at a discount to Brent) and its quality (a mix of light and medium crude well-suited to Indian refineries). India's engagement with Iran also spans the Chabahar Port project — India's gateway to Afghanistan and Central Asia.
- Iran: member of OPEC; major oil producer with proven reserves of approximately 208 billion barrels (among top 5 globally)
- India-Iran oil trade: disrupted 2019–2023 due to US sanctions under CAATSA (Countering America's Adversaries Through Sanctions Act)
- CAATSA: US law (2017) allowing sanctions on entities purchasing Iranian, Russian, or North Korean defence and energy products
- India's CAATSA exemption: India received a 180-day waiver in 2018 but this was not renewed — forcing cessation of Iranian oil purchases
- Chabahar Port: developed by India in Iran's Sistan-Baluchestan province; provides overland access to Afghanistan/Central Asia bypassing Pakistan
- Chabahar Port: exempted from US sanctions (May 2024 US decision); India-Iran-Afghanistan trilateral connectivity asset
● Tracked since March 20, 2026 · last seen April 09, 2026 · updates as the daily brief publishes