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The government’s acknowledgement connected Saturday (April 4, 2026) that it is procuring lipid and LNG from Iran aft a spread of 7 years has sparked anticipation for Indian traders that it whitethorn see restoring commercialized with Iran and its involvement successful the Chabahar port, adjacent arsenic U.S. authorisation deadlines loom again successful April. The U.S.’s impermanent sanctions waiver for Russian lipid specifically for India expires connected Sunday (April 5), portion different wide waiver for each countries volition expire connected April 11. In addition, the U.S. waiver for Iranian lipid volition expire connected April 19, and its six-month waiver for India’s involvement successful Chabahar larboard ends connected April 26.
On Friday (April 3), the Ministry of External Affairs said it “remains engaged” with the U.S. and each parties connected the contented of Chabahar, portion officials expressed anticipation that Washington would see extending the waivers connected oil, fixed that the warfare successful West Asia continues, with nary extremity successful sight.
However, there’s nary clarity connected whether the authorities volition cull U.S. President Trump’s demands if the U.S. decides to re-impose sanctions.
Iran’s continued restrictions connected the Hormuz Strait are a large concern, accidental exporters, fixed that much than 80% of India’s Basmati exports are destined for West Asian countries and a ample fig of export consignments are presently stranded successful the Strait, stuck successful transit astatine ports oregon connected the precocious seas, starring to dense fiscal losses for them.
In a missive to Commerce and Industry Minister Piyush Goyal, the Punjab Rice Millers Exporters Association urged the authorities to put a barter statement with Iran, exchanging Iranian crude lipid for Indian atom shipments. “This 1 important measurement would easiness India’s lipid situation and revive our accepted commercialized with Iran,” relation manager Ashok Sethi told The Hindu, adding that the exporters are urging the authorities to marque usage of the “Rupee outgo mechanism”, a corpus money managed done UCO Bank acceptable up successful 2012 for commodities trade. He added that this would assistance farmers wide the stocks of Basmati atom from the erstwhile harvest play up of the caller kharif sowing play from May.
If activated, the mechanics would besides assistance India wage for crude lipid from Iran, though astatine contiguous Indian refiners are not taking precise ample quantities of it, fixed the precocious prices, debased availability and the request to recalibrate refineries for it.
In 2019, the Modi authorities ended imports of Iranian and Venezuelan lipid owed to alleged U.S. pressure, and began to trim imports of Russian lipid successful November 2025 due to the fact that of the U.S.’s 25% punishment tariff, which was removed successful February 2026. After Mr. Trump threatened different 25% tariff for immoderate commercialized with Iran, MEA officials pointed retired that these were astatine minimal levels of $1.6 cardinal successful 2024, dropping from astir $15.7 cardinal successful 2014. The authorities besides pulled retired each unit and prepaid its concern committedness of $120 cardinal to Iran successful November 2025 for the Chabahar larboard improvement project, indicating it was prepared to extremity the task owed to the U.S. sanctions threat.
“On this peculiar contented (Chabahar port), the sanctions waiver that was fixed to america is valid till April 26, 2026. The Government of India remains engaged with each acrophobic successful bid to code the implications of these developments,” MEA spokesperson Randhir Jaiswal said astatine a briefing.
Meanwhile, the Ministry of Petroleum and Natural Gas has stressed that decisions connected buying lipid were commercially driven, denying the U.S. claims that it “allowed” India to bargain Russian lipid by issuing the waivers truthful arsenic to support lipid prices low. Despite that, the terms of lipid has remained high, astatine much than $110 per barrel.
“Amid Middle East proviso disruptions, Indian refiners person secured their crude lipid requirements, including from Iran; and determination is nary outgo hurdle for Iranian crude imports arsenic per immoderate rumours being circulated,” the PNG ministry said connected Saturday (April 4), adding that India present imports crude lipid from implicit 40 countries. All eyes are present connected whether the imports volition continue, adjacent if the U.S. snaps backmost immoderate of its sanctions successful April.
(With inputs from Saptparno Ghosh)
