As global oil supplies tighten due to the ongoing conflict in West Asia, which has disrupted cargo movement through the Strait of Hormuz, India has begun purchasing Iranian crude to meet its demand. In the past few days, the country has received two Iranian crude cargoes carried by Very Large Crude Carriers (VLCCs)—Felicity and Jaya—which have arrived at Indian ports. A VLCC typically carries around 2 million barrels of oil. The Iran-flagged Felicity has reached Sikka Port, while the Curaçao-flagged Jaya has arrived at Odisha’s Paradip Port.
According to ship-tracking firm Kpler, the Felicity, carrying approximately 2 million barrels of Iranian crude, is currently anchored near Sikka based on its latest AIS signal. Meanwhile, Jaya, also carrying Iranian crude, was spotted off Paradip on April 9.
This marks the first time in nearly seven years—since 2019—that India has received crude oil from Iran.
The ongoing crisis has significantly impacted cargo movement through the Strait of Hormuz, a critical chokepoint that handles around 20% of the world’s crude oil and 25% of global gas supply.
In response to the situation, the United States issued a 30-day sanctions waiver for Iranian oil already at sea. According to the Office of Foreign Assets Control (OFAC), the waiver applies to oil loaded on vessels on or before March 20 and discharged by April 19.
Following this, the US has allowed the purchase of previously sanctioned Russian as well as Iranian crude to ease supply constraints caused by disruptions in the Strait of Hormuz. India, in turn, has increased its procurement of both Russian and Iranian crude amid the crisis.
Iran was once a major oil supplier to India, but imports were halted after US sanctions were imposed. Currently, nearly 90 per cent of Iran’s oil exports are directed to China.
The government, in a statement, said there are no payment hurdles for Iranian crude imports and confirmed that India has resumed such imports.