India To Receive First Iranian Oil Cargo In 7 Years After U.S. Lifts Sanctions

After a gap of seven years, India is set to receive its first cargo of Iranian crude oil. State-run Indian Oil Corporation has purchased the shipment, which is currently heading to India’s east coast. This marks a major shift triggered by the ongoing Iran war and the severe disruption of the Strait of Hormuz, which has choked nearly 20% of global oil trade. The US temporarily lifted sanctions on Iranian oil to ease the global supply shortage caused by the conflict. India had stopped buying Iranian oil in May 2019 after the US reimposed sanctions and withdrew waivers. In recent weeks, New Delhi has also ramped up imports from Venezuela (highest in 6 years) while exploring supplies from the US, Brazil, and Nigeria to diversify its sources.