Iran, India move to rekindle historic energy partnership amid US sanctions waiver

Iran is seeking to expand its energy cooperation with India during a 60-day exemption period from US sanctions, according to Iranian Oil Minister Mohsen Paknejad.

Paknejad said on Wednesday that Iran is ready to further increase its economic relations with India, especially energy exchanges, now that sanctions on Iranian oil exports have eased.

The National Iranian Oil Company has already begun reaching out to Indian refiners and trading houses to resume commercial ties, with trade sources confirming that Indian refiners have recently received communication from NIOC regarding resumption of oil trade.

A senior refinery executive said that trading teams are in touch with the Iranian side and deliberations are ongoing regarding the techno-commercial feasibility of lifting Iranian oil under the new arrangement.

The minister made the remarks upon arriving in India for a meeting of energy ministers of the group of BRICS developing economies in New Delhi.

The two-day summit in Gurugram on June 25-26 will focus on sustainable energy development and expanding cooperation within the BRICS framework.

During the visit, Paknejad is scheduled to meet with India's Minister of Petroleum and Natural Gas Hardeep Singh Puri to discuss potential cooperation in oil, natural gas, refining, and petrochemicals, while also holding separate bilateral meetings with other BRICS energy ministers.

Iran's oil minister heads to India for BRICS summit as sanctions lift

India was the second-largest buyer of Iranian oil until 2019. With US sanctions now lifted and payment channels restored, Iran

His remarks came days after the US Treasury announced the waiving of its sanctions on Iranian petroleum and oil products exports to comply with an MoU reached between the two countries earlier this month which was aimed at ending the US-Israeli aggression on Iran.

On Monday, the US Department of the Treasury issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian crude, petroleum products, and petrochemicals through August 21, with the waiver notification explicitly allowing payments to be processed in dollar-denominated funds.

The US has also committed to removing its naval blockade of Iranian ports.

“As you are aware, we have been exempted from sanctions for a period of 60 days, and based on certain understandings we have reached with the American side regarding sanctions, we are continuing on our path. We are now ready for (expansion of) all our relations with India, particularly in the economic sectors of this country,” Paknejad said.

India was historically the second-largest buyer of Iranian crude oil after China until May 2019, when it halted purchases under pressure from the former Trump administration's re-imposed sanctions.

At its peak in 2018, Iran supplied some 620,000 barrels per day to India, worth nearly $48 million daily, with Iranian crude accounting for approximately 11.5 percent of India's total imports.

The sanctions waiver has already enabled the resumption of limited purchases, with India receiving its first Iranian crude shipments in seven years in April 2026.

Two very large crude carriers carrying Iranian crude docked at Indian ports on the east and west coasts, delivering about 4 million barrels of crude loaded at Kharg Island. Indian Oil Corp and Reliance Industries are among the refiners taking advantage of the opportunity.

According to Kpler data, India imported around 73,000 barrels per day of Iranian crude in June.

Industry participants say Iranian crude had traditionally been attractive to Indian refiners because of its competitive pricing, favorable credit terms and suitability for processing at several domestic refineries.

Many Indian refineries were originally configured to process Iranian crude grades and historically benefited from extended credit periods of 60-90 days and favorable freight economic.

A later report from Iranian Oil Ministry's news service Shana said that Paknejad had met with India's Minister of Housing, Urban Affairs and Power Manohar Lal. The report said that the two ministers had discussed expanded bilateral relations in the energy sector.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk