Two sanctioned super tankers carrying Iranian crude have anchored off India’s eastern and western coasts, marking what could be the first such shipments near the country in almost seven years, even as the US steps up efforts to curb Tehran’s oil exports.
According to ship-tracking data cited by Bloomberg, the very large crude carrier Felicity dropped anchor near Sikka on the Gujarat coast late Sunday. The tanker, operated by the National Iranian Tanker Company, is carrying around 2 million barrels of crude loaded at Kharg Island in mid-March.
India has not imported oil from Iran since 2019 due to US sanctions. However, a waiver issued by Washington last month permitted the purchase of cargoes that were already at sea, in an effort to stabilise supplies amid the ongoing conflict in West Asia.
Jaya, a very large crude carrier, loaded with a similar quantity of crude from Kharg Island, had moored off Paradip on India’s east coast at roughly the same time. The cargo aboard the Jaya had been purchased by Indian Oil Corporation, the country’s largest refiner, as The Telegraph Online has reported earlier.
Sikka serves as a major crude handling hub for Reliance Industries and Bharat Petroleum Corporation.
Late last month, the tanker Ping Shun, carrying about 600,000 barrels of Iranian crude, was initially bound for Vadinar in Gujarat but diverted to China mid-voyage due to payment issues.
Had it reached Vadinar, oil on Ping Shun would have been the first Iranian barrels to reach Indian shores in seven years.
Historically, India was a major buyer of Iranian crude, importing significant volumes of Iranian light and heavy grades due to strong refinery compatibility and favourable commercial terms.
Following sanctions tightening in 2018, imports ceased from May 2019, with volumes replaced by Middle Eastern, US and other grades. At peak, Iranian crude accounted for 11.5 per cent of India's total imports.
India used to buy 518,000 barrels per day of Iranian oil in 2018, which slowed to 268,000 bpd between January and May 2019 when the US granted waivers to a few buyers. There have been no imports since.
The key grades that Indian refiners used to purchase are Iran light and Iran heavy crudes.
An estimated 95 million barrels of Iranian oil is on vessels on sea, of which around 51 million barrels could be sold to India, while the remaining are better suited for buyers in China and Southeast Asia.
The arrival of these tankers off Indian shores points to a cautious and limited reintroduction of Iranian crude into the country’s supply mix, although regulatory uncertainties and geopolitical risks remain significant.
The development also coincides with uncertainty surrounding Donald Trump’s proposal to block vessels passing through the Strait of Hormuz, a move aimed at curbing Iranian exports after recent talks collapsed. It is not yet clear how this could affect existing shipments or the waiver currently in place.