• India’s state-run refiners are in discussions with traders supplying Iranian crude in anticipation of a possible extension of US sanctions waivers beyond August 21, 2026.
• Refiners have already secured crude supplies through August, leaving limited scope for immediate Iranian oil purchases.
• They may still consider buying spot cargoes from Iran if offered at attractive discounts.
• The talks are focused on ensuring access to Iranian crude if the US eases restrictions or extends the waiver period.
• Following the US-Iran ceasefire and the reopening of oil flows through the Strait of Hormuz, prices of Middle Eastern crude have declined sharply.
• Increased competition among oil exporters has reduced Iran’s pricing advantage in the market.
• Saudi Arabia announced its largest monthly cut in official selling prices in over two decades to remain competitive in Asia.
• Russian crude continues to be more attractive for Indian refiners due to deeper discounts and competitive pricing.
• India imported a record 2.7 million barrels per day of Russian crude in June, with strong imports expected to continue in July.
• Indian refiners are expected to begin negotiations for September crude deliveries in the coming weeks and may keep provisions for Iranian supplies depending on developments in US-Iran negotiations.
• Iran was once among India’s top oil suppliers, accounting for nearly 10% of crude imports in 2018 before US sanctions curtailed trade.