India resumes oil and gas imports from Iran after 7 years amid Hormuz

India confirmed on April 4, 2026 that it has resumed purchases of Iranian crude oil and liquefied petroleum gas (LPG) after a seven-year hiatus, according to a statement from the Ministry of Petroleum and Natural Gas (MoPNG). The ministry said Indian refiners have secured contractual supplies from Tehran and that there were no payment impediments for Iranian shipments.

The move followed disruptions to shipments through the Strait of Hormuz and a temporary easing of constraints on seaborne energy flows. The MoPNG highlighted that a 44,000-ton LPG cargo aboard the Sea Bird berthed at Mangalore on April 2, 2026 and began discharging, while ship-tracking data and market intelligence signalled crude cargoes destined for Indian ports. New Delhi stressed that companies retain flexibility to source crude from more than 40 countries based on commercial considerations.

Markets reacted to the confirmation: Brent and WTI futures rose as traders priced in tighter physical supply and potential rerouting costs, according to industry data. Refining margins face short-term volatility as feedstock quality and freight risks influence buying decisions; Indian refiners in particular value Iranian crude grades for their technical fit and competitive terms.

In a broader geopolitical context, Washington issued temporary licences in March 2026 to ease the sale and delivery of certain oil cargoes already at sea, a move intended to stabilise global supplies amid the Gulf conflict. That limited policy flexibility, combined with regional security dynamics around the Hürmüz Boğazı, helped reopen commercial channels previously constrained by sanctions and logistical hurdles. For New Delhi, the return to Iranian supplies reflects a calculus balancing energy security, commercial optimisation and geostrategic relationships.

Analysts say the resumption should provide near-term relief to Indian fuel inventories but is unlikely to resolve structural market tightness while regional fighting continues. Key indicators to watch are tanker flows through the Strait of Hormuz, OFAC/licensing developments, and monthly stock and import data from Indian refiners; these will determine whether Iranian barrels become a sustained component of India’s portfolio or a temporary buffer.