Iran offers discounted crude to India after US sanctions waiver, refiners weigh return: Report

2 min readUpdated: Jun 26, 2026 08:17 PM IST

Sources told Reuters that NIOC was offering crude at $3-$4 a barrel below comparable regional grades on a landed basis. (File Photo)

Several middlemen have offered Indian refiners discounted Iranian oil after the United States temporarily eased sanctions on Tehran, reopening a narrow window for energy trade following the recent US-Iran agreement, Reuters reported, citing industry sources.

The approaches have come both directly from the National Iranian Oil Company and through intermediaries claiming to have been allocated oil by the Iranian state producer, the sources said.

One Indian refining source, speaking on condition of anonymity because the discussions are confidential, told Reuters.

“Apart from NIOC, several traders are contacting us for the sale of Iranian oil. But my priority is to give a chance to NIOC.”

Sources told Reuters that NIOC was offering crude at $3-$4 a barrel below comparable regional grades on a landed basis.

The report added that the Indian refiners have limited room to take on Iranian crude in the near term, as most have already secured their oil supplies through August. Additionally, Middle Eastern term suppliers are pressing buyers to honour their annual contractual commitments, leaving little flexibility for new purchases.

According to the report, the traders who are approaching the Indian refiners are based in Singapore and Dubai.

LPG also on agenda

There were also discussions on the potential supplies of crude ⁠and liquefied ‌petroleum gas (LPG) to India during Iranian ​Petroleum Minister Mohsen Paknejad’s visit to New Delhi earlier this month.

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While the waiver has reopened the possibility of trade, refiners say banking channels and payment mechanisms remain unclear, making immediate purchases unlikely.

What India matters

Any resumption of Iranian crude exports to India would mark one of the biggest shifts in the country’s energy imports since US sanctions forced New Delhi to halt purchases six years ago. Whether that happens now depends largely on payment mechanisms, banking clarity and the outcome of the broader US-Iran negotiations.

(With inputs from Reuters)

(The article was curated by Paramita Datta, who is an intern with The Indian Express )

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