How India May Benefit from US' 60-Day Iran Oil Sanctions Waiver

India

could gain short-term relief in its energy sourcing strategy after the United States issued a 60-day sanctions waiver on Iranian oil. Following the Switzerland talks between US team led by Vice President JD Vance, and the Iranian delegation headed by Parliament speaker Mohammad Bagher Ghalibaf, Washington has waived its sanctions on Iranian oil.

US Issues 60-Day Sanctions Waiver on Iranian Oil

The US Treasury has issued a 60-day license waiving sanctions on Iranian oil as part of the interim agreement to end Iran war. The license authorises the production, delivery and sale of Iranian oil. It will last through August 21.The license emerged Monday as US Vice President JD Vance said his lengthy talks with senior Iranian officials in Switzerland created a "good foundation for a successful final deal." Negotiators are seeking a permanent end to the war that the US and Israel began in late February. The two sides are expected to continue technical talks.

What US Sanctions Waiver Means For India

For India, the move could reopen a limited but significant supply channel that has remained shut since 2019, when Washington reimposed sanctions on Tehran. India has traditionally been a buyer of Iranian crude. India has been one of the major buyers of Iranian oil along with South Korea, Japan, Greece, Taiwan, Italy and Turkey. Iran accounted for 14 per cent of India’s crude imports in 2009, making the country the second-largest supplier, the New York Times reported.Considering the supply crunch, New Delhi may benefit from America's 60-day temporary waiver of Iranian oil.

India Boosts Russian, UAE Oil Purchases in June

This comes at a time when India's Russian oil imports and shipments from the United Arab Emirates (UAE) have touched record levels. India imported an average of 2.66 million barrels per day of crude oil from Russia in June, through June 19, compared to 1.91 million bpd in May, data from maritime and commodity intelligence firm Kpler showed, cementing Moscow's position as the country's largest oil supplier.Imports from the United Arab Emirates stood at 6,36,000 barrels per day (bpd) in June, through June 19, marginally below the record 6,44,000 bpd imported in May, while Venezuela emerged as India's fourth-largest crude supplier with shipments of 2,09,000 bpd, behind Saudi Arabia's 384,000 bpd.The purchases underscore India's strategy of diversifying sourcing, with Russian barrels remaining attractive due to discounts and UAE supplies helping offset uncertainty surrounding shipments through the strategic waterway of the Strait of Hormuz. With the Iranian oil waiver, India could further widen its sourcing options and reduce overdependence on any single supplier at a time of heightened geopolitical volatility.