India Likely to Resume Oil Imports from Iran Following an Expected Ease in the US Sanctions

As stated by the chairman of Hindustan Petroleum Corporation on Thursday, Indian Refiners are likely to resume oil imports from Iran if the US government eases some previously imposed sanctions against Iran's capital province,Tehran. The announcement was backed by the buzz that the US president Joe Biden is looking for a pragmatic solution to ease the nuclear tensions with Iran, followed by an ease on the previously imposed US sanctions.

India, which was regarded as the top importer of Iranian Oil after China, was compelled to stop oil imports from OPEC nations pressurized by the sanctions imposed over Iran by the former US President Donald Trump. As per the Chairman of HPCL, Iranian oil has always been a trusted commodity for Indian refiners, hence they will be happy to resume oil imports from the country under favorable conditions.

Washington and Tehran have had hostile terms since decades, however, the tension between them intensified under the former US president, when he withdrew from the nuclear deal signed with Iran and 6 other world powers in 2015.

Before applying for the oil imports from any country, refiners generally evaluate all preferential crude options available and the value they add to maximize the revenue. As per the reports, Iran was previously availing continuous discounts upon freight charges and payment policies which made the contracts from the nation more favorable than other countries. After the ban on Iranian imports, India has diversified its oil import options. As per ChemAnalyst. “The availability of Iranian oil could assist the country in limiting its oil import expenses and thus could preferentially aid in uplifting the economy.”