The world’s third-largest oil importer had not received shipments from Iran since May 2019, when U.S. pressure led buyers to halt purchases, but recent supply strains stemming from the U.S.-Israel conflict have tightened availability for the South Asian nation.

“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports,” the ministry said in a statement on X, indicating that financial channels for such transactions are currently functioning.

The development follows a temporary easing of U.S. sanctions on Iranian oil and refined products last month aimed at alleviating global supply shortages, according to the report.India said it has secured its full crude oil requirements for the coming months, adding that refiners retain flexibility to source supplies from more than 40 countries based on commercial considerations.

In addition to crude, India has imported 44,000 metric tons of Iranian liquefied petroleum gas carried on a sanctioned vessel that berthed at the western port of Mangalore on Wednesday and is currently discharging cargo, the ministry said.

International crude prices have climbed above $100 per barrel following disruptions around the Strait of Hormuz, a critical route that accounts for about 40% of India’s crude imports, after military strikes by the United States and Israel on Iran late last month.

Oil Minister Hardeep Singh Puri said the government had absorbed a significant fiscal burden to offset losses incurred by oil marketing companies, estimating under-recoveries of about 24 rupees per litre on petrol and 30 rupees per litre on diesel at current global prices.

Economist Madhavi Arora of Emkay Global estimated the annualised fiscal impact of the duty cuts at around 1.55 trillion rupees, noting that the measures would cover roughly 30% to 40% of annual losses faced by fuel retailers.India’s benchmark 10-year government bond yield rose 7 basis points to 6.95%, its highest level in 20 months, reflecting concerns over increased borrowing and fiscal strain

.Shares of state-run refiners, including Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, rose more than 4% at the open before trimming gains later in the session.

Although India formally deregulated fuel pricing, state-owned oil marketing companies which dominate about 90% of the retail market often delay passing on higher crude costs to consumers during periods of volatility.

The latest measures highlight the government’s reliance on tax adjustments and export levies to manage domestic fuel prices and inflationary pressures during global energy shocks.

India, the world’s second-largest crude steel producer, is facing one of its most severe LPG supply crises in decades as shipments from key producers have been affected by the ongoing Iran war, tightening availability of fuel critical for smaller steel units.

“We have taken up with the Ministry of Petroleum and Natural Gas to see within the existing conditions what best can be done,” the source said, adding discussions were ongoing.

Industry participants have warned that prolonged shortages could force production cuts, particularly among small and medium-sized steel producers that rely heavily on LPG.

“If this LPG situation continues, it will not only impact margins but also affect jobs, future investments in value-added steel, and the confidence to commit to long-term contracts, both in India and overseas,” said Vedant Goel, a director at Pune-based Enlight Metals.

India has already invoked emergency measures to prioritise gas supplies for essential sectors after disruptions to liquefied natural gas shipments through the Strait of Hormuz constrained domestic availability.

The supply squeeze has intensified concerns over industrial output stability, as policymakers weigh options to balance energy security with manufacturing demand amid ongoing geopolitical uncertainty.

The conflict has disrupted energy shipments in the region and affected India’s key supplier of liquefied natural gas (LNG), Qatar, prompting supply adjustments by companies that depend on imported cargoes to meet domestic demand.

Sources familiar with the matter said lower gas availability had already marginally affected output at some fertiliser producers, including Indian Farmers Fertiliser Cooperative Ltd and Kribhco Fertilizers Ltd. The companies did not respond to requests for comment outside normal working hours.

Gujarat Gas Ltd said in a stock exchange filing that it had declared force majeure and would restrict gas supplies to industries from Thursday. Its parent, Gujarat State Petroleum Corp (GSPC), sources much of its gas from Qatar and Abu Dhabi National Oil Co for sale to local customers.

Tanker disruptions at Ras Laffan

India’s largest gas importer, Petronet LNG Ltd, said it had issued a force majeure notice to supplier QatarEnergy and to local buyers GAIL (India) Ltd, Indian Oil Corp and Bharat Petroleum Corp after three LNG tankers were unable to reach the Ras Laffan loading port in Qatar.

Petronet said QatarEnergy had also sent a notice indicating a potential force majeure event due to the hostilities in the region.

GAIL and Indian Oil have already reduced gas supplies to industrial users, Reuters reported earlier this week.

Fertiliser sector begins to feel impact

Industry sources said the restrictions had begun to affect fertiliser manufacturers, which rely heavily on natural gas as a feedstock for ammonia and urea production.

Any sustained reduction in gas supplies could tighten fertiliser output, although the impact so far has been limited, according to the sources.

Hormuz disruption stalls shipments

Shipping through the Strait of Hormuz between Iran and Oman has slowed sharply after attacks on vessels in the area during the hostilities and Tehran’s retaliatory strikes.

The narrow waterway carries about one-fifth of the world’s oil consumption as well as large volumes of LNG, making it one of the most critical maritime routes for global energy supplies.

India imported about 27 million tonnes of LNG in the 2024/25 fiscal year, accounting for roughly half of its natural gas consumption, according to government data. Qatar supplies the bulk of those imports.

Companies have not announced cuts to gas supplies for households or the automobile sector.

Reliance, which operates the world’s largest refining complex at Jamnagar in Gujarat, last received Russian crude in December after securing a one-month U.S. concession that allowed it to wind down direct dealings with sanctioned Russian producer Rosneft beyond a November deadline.

Sources said the company will now buy Russian oil only from non-sanctioned sellers, ensuring the cargoes remain compliant with international sanctions regimes, though the exact number of shipments expected in February and March has not been disclosed.

It remains unclear whether Reliance will continue importing Russian crude beyond March, reflecting uncertainty faced by refiners navigating evolving sanctions rules and geopolitical pressures linked to the Ukraine conflict.

Reliance has not publicly commented on the renewed purchases, but the move signals that Russian oil still plays a role in India’s energy mix, even as volumes are expected to remain lower than in previous months.

Despite Reliance’s return to Russian crude, India’s overall imports from Russia are likely to stay subdued through February and March, as refiners increasingly turn to alternative suppliers, particularly in the Middle East.

Reliance had previously been importing up to 500,000 barrels per day of Russian crude under a long-term agreement with Rosneft to feed its 1.4 million barrels-per-day Jamnagar refinery complex, making it one of the biggest conduits for Russian oil into India.

The shift comes as European Union regulations tighten further, with the bloc stating it will not accept fuel produced at refineries that processed Russian oil within 60 days prior to the bill-of-lading date, a rule that directly affects export-oriented refiners.

To navigate these restrictions, Reliance has said it will process post-November Russian cargoes at its India-focused 660,000 barrels-per-day refinery, allowing its 704,000 barrels-per-day export-oriented plant to continue selling fuel into the European market.

Indian refiners, who became the largest buyers of discounted Russian seaborne crude after the 2022 outbreak of the Ukraine war, are now reassessing procurement strategies to balance cost advantages against compliance risks.

As part of this recalibration, purchases of Middle Eastern crude have risen, with national oil companies in the region emerging as more stable long-term suppliers amid regulatory uncertainty surrounding Russian barrels.

Reliance executives have acknowledged the challenges posed by sudden sanctions, noting that the company has previously had to cut back imports abruptly and has since diversified sourcing to avoid disruptions in the spot market.

The renewed but limited intake of Russian oil underscores India’s pragmatic approach to energy security, seeking affordable supplies while maintaining access to key export markets such as the European Union.

For global oil markets, Reliance’s decision reflects how refiners are threading a narrow path between geopolitics, sanctions compliance and commercial realities, particularly as enforcement rules become more complex.

As sanctions evolve and buyers adapt, the coming months will show whether Russian crude retains a foothold in India’s refining system or continues to be gradually replaced by Middle Eastern and other alternatives.

The statement comes at a time when global oil flows are being recalibrated amid sanctions, tariffs, and shifting geopolitical alliances affecting major producers and consumers alike.

Reliance, which operates the world’s largest refining complex, said it is awaiting clarity on whether Venezuelan oil can be legally sold to buyers outside the United States before making any commercial decision.

Any potential purchase, the company emphasized, would be conducted strictly within compliance frameworks governing international trade and sanctions.

Industry sources say India’s state-run refiners are also closely watching developments, as Venezuelan crude could offer an alternative source of supply if restrictions ease.

For India, one of the world’s largest energy importers, access to additional crude streams is critical to managing costs and ensuring long-term energy security.

Reliance halted purchases of Venezuelan oil in 2025 after trade restrictions and punitive tariffs made such imports commercially and politically difficult.

The company’s refineries in Gujarat, however, are technically well suited to process heavier crude grades like Venezuela’s Merey, giving it flexibility if discounted barrels return to the market.

Recent diplomatic developments between Caracas and Washington have reopened discussions around limited oil exports, sparking renewed interest among global refiners.

Analysts note that even modest Venezuelan exports could influence pricing dynamics, particularly for complex refineries designed to handle heavy and sour crudes.

Energy market specialists suggest Venezuelan oil could re-emerge at attractive discounts, improving refining margins for buyers able to process it efficiently.

Such barrels could enhance feedstock flexibility for refiners facing rising costs and narrowing profit margins in other crude streams.

For India, Venezuelan oil also represents a politically acceptable diversification option at a time when Russian crude imports are under intense international scrutiny.

New Delhi has faced sustained pressure from Western governments to reduce reliance on Russian energy following the Ukraine conflict.

While Russian oil has helped India secure discounted supplies, growing compliance risks and tariff threats have prompted some refiners to reassess sourcing strategies.

Reliance’s recent reduction in Russian crude intake reflects a broader trend of cautious recalibration rather than abrupt disengagement.

Analysts say diversification is increasingly becoming a strategic necessity rather than a commercial choice for Indian refiners.
Balancing affordability, compliance, and geopolitical exposure has emerged as a central challenge for the country’s energy planners.

Venezuelan crude, if reintroduced into global markets, could partially offset reductions in Russian supply without triggering the same level of diplomatic backlash.

However, volumes are expected to remain limited, meaning such imports would supplement rather than replace existing supply arrangements.

India’s refining sector has historically demonstrated adaptability, adjusting procurement patterns in response to sanctions, conflicts, and shifting trade rules.

Reliance’s conditional openness underscores how major players are keeping options open amid an uncertain global energy environment.

As international negotiations continue, clarity on export permissions will determine whether Venezuelan oil once again finds its way into Indian refineries.

The outcome could influence not only India’s import mix but also broader discussions on energy security, sanctions compliance, and global oil market stability.

The case has drawn international attention as India balances its climate commitments with economic development and energy policy priorities.

The activist, Harjeet Singh, works with an environmental non-governmental organization involved in promoting a proposed global agreement aimed at limiting fossil fuel production.

Indian enforcement agencies said the detention was part of an investigation into alleged irregularities in foreign funds received by the organization to influence domestic energy policies.

Officials stated that Singh and his wife, who jointly run the organization, were questioned after searches were conducted at their residence.

Authorities said the inquiry focuses on whether overseas funding was used in ways that could undermine India’s strategic interests in the energy sector.

Following questioning, Singh was granted bail and released, with the organization saying it would fully cooperate with investigators.

The group maintained that its activities were transparent and focused on environmental protection and sustainable development rather than political interference.

The investigation centers on advocacy related to a proposed Fossil Fuel Non-Proliferation Treaty, an initiative first introduced by a Pacific island nation in 2022.

The treaty calls for halting new fossil fuel production while accelerating a global transition toward renewable energy sources.

Supporters argue that such a treaty is necessary to meet international climate goals and protect vulnerable countries from climate-related risks.

So far, the proposal has gained backing from a number of developing nations, positioning it as a grassroots-driven climate initiative.

Indian authorities, however, have expressed concern that endorsing or promoting such a treaty could expose the country to legal and economic risks.

Officials warned that international commitments restricting fossil fuels could affect India’s energy security and growth trajectory.

India relies heavily on coal, oil, and gas to power its expanding economy and meet the needs of its large population.
Any rapid or externally driven shift away from fossil fuels is viewed by policymakers as potentially disruptive to development goals.

The timing of the probe has also drawn attention, coming shortly after a major global climate summit where disagreements emerged over stronger commitments.

Several countries, including developing economies, objected to outcomes that stopped short of firm plans to phase out fossil fuels.

Legal experts note that climate-related treaties and international court opinions are increasingly shaping global energy debates.

Recent advisory opinions from international judicial bodies have emphasized the responsibility of wealthier nations to address climate change impacts.

Climate advocates associated with the treaty initiative said the proposal is meant to support, not pressure, developing countries like India.
They argue that international cooperation, access to finance, and technology transfer are essential for fair energy transitions.

Supporters also stress that climate action does not necessarily conflict with economic growth if managed through inclusive and gradual policies.

They say renewable energy expansion can create jobs, improve air quality, and reduce long-term environmental and health costs.

Critics counter that activism funded from abroad risks crossing into policy influence that should remain domestically driven.

They argue that energy decisions must reflect national priorities, local conditions, and economic realities.

The case highlights the broader tension between climate activism and state sovereignty in an era of global environmental challenges.

As investigations continue, the episode underscores how climate policy, funding transparency, and national security concerns are becoming increasingly intertwined.

The warning comes as talks between the two countries remain unresolved, with Washington signaling growing impatience over India’s continued engagement with Russian energy supplies despite Western sanctions linked to the Ukraine conflict.

Speaking to reporters during recent travel, Trump indicated that the United States has the ability to raise tariffs quickly, suggesting that trade measures could be used as leverage to influence India’s energy sourcing decisions.

India has emerged as one of the largest buyers of discounted Russian oil in recent years, a strategy that has helped it manage inflationary pressures and ensure energy security amid volatile global markets.

However, the U.S. administration views these purchases as indirectly supporting Moscow’s war effort, and senior American lawmakers have echoed calls for tougher action against countries that continue buying Russian crude.

Some Indian exports already face steep duties in the U.S. market, with total tariffs reaching as high as 50 percent on certain goods, partly linked to concerns over Russian oil imports, according to trade analysts.

Financial markets in India reacted cautiously to the latest signals, with technology stocks declining as investors weighed the risk of prolonged trade friction and further delays to a long-anticipated bilateral trade agreement.

U.S. officials have argued that sanctions and tariff threats have already reduced India’s reliance on Russian oil, though Indian refiners continue limited purchases to balance cost considerations and supply stability.

Trade experts warn that India’s careful diplomatic balancing act may no longer be sufficient, as Washington appears to be pushing for clearer commitments rather than incremental adjustments or quiet reductions.

Analysts note that even a complete halt to Russian oil imports may not fully ease U.S. pressure, as trade demands could shift toward market access, digital trade rules, or industrial subsidies.

From India’s perspective, policymakers remain cautious about setting precedents that could constrain strategic autonomy, particularly in energy sourcing and foreign policy decision-making.

At the same time, India is seeking to preserve strong economic ties with the United States, one of its largest export markets, especially for pharmaceuticals, information technology services, and engineering goods.

Despite the tariff challenges, Indian exports to the U.S. have shown resilience in recent months, though overall shipments have fluctuated amid global demand uncertainty and trade policy risks.

To address U.S. concerns, Indian authorities have reportedly increased monitoring of oil import data, including more frequent disclosures of purchases from Russia and alternative suppliers such as the United States.

Diplomatic engagement between New Delhi and Washington has continued at senior levels, with multiple high-level conversations aimed at preventing further escalation while keeping the door open for compromise.

The situation highlights the complex intersection of geopolitics, energy security, and trade policy, where economic decisions are increasingly shaped by strategic alliances and global power shifts.

As both sides weigh their next steps, businesses and investors are bracing for continued uncertainty, with tariff policy emerging as a key variable in the future of U.S.-India economic relations.

The move highlights New Delhi’s emphasis on transparency, data-driven policymaking, and constructive engagement with international partners, particularly as discussions with the United States on a broader trade framework continue.

By requesting more frequent reporting on oil imports from Russia and the United States, India aims to ensure that official figures are accurate, timely, and aligned with verified domestic records rather than external estimates.

This approach underscores India’s desire to speak with clarity and confidence in global negotiations, reinforcing its reputation as a responsible and reliable economic partner on the world stage.

India’s energy strategy has long been guided by affordability, availability, and stability, especially for a fast-growing economy with rising industrial and consumer demand.

Since 2022, discounted crude supplies from Russia played a stabilizing role during a period of extreme volatility in global energy markets, helping India manage inflationary pressures.

At the same time, policymakers have consistently emphasized diversification, ensuring that no single supplier dominates India’s energy basket over the long term.

The current data-gathering initiative fits into this broader philosophy, allowing the government to present a balanced picture of its evolving import mix as market conditions change.

Officials familiar with the matter indicate that Russian oil imports are already moderating, driven by a combination of tighter global sanctions, logistical challenges, and improving alternatives.

This gradual adjustment demonstrates India’s ability to adapt pragmatically to shifting geopolitical and economic realities without abrupt disruptions to domestic energy supply.

Engagement with the United States remains an important pillar of India’s external economic strategy, particularly as both countries seek to reduce trade frictions and expand strategic cooperation.

Energy purchases, including crude oil and liquefied natural gas, have increasingly become part of wider trade conversations, reflecting their role in economic interdependence.

Indian refiners have already increased imports of U.S. energy products in recent years, signaling openness to deeper commercial ties when pricing and supply conditions align.

The weekly data initiative also strengthens internal coordination between ministries, regulators, and industry players, improving policy responsiveness and institutional efficiency.

Such transparency enhances investor confidence and supports India’s ambition to position itself as a predictable and rules-based market for global energy companies.

Importantly, the government has not issued any directive mandating reductions from specific suppliers, preserving commercial autonomy for refiners operating in competitive global markets.

This balanced stance reassures domestic industry while allowing policymakers flexibility in diplomatic engagements, avoiding unnecessary disruptions to refining operations.

As global energy flows realign, India’s emphasis on accurate reporting and diversification signals maturity in economic governance and international engagement.

The approach reinforces India’s broader message that energy security, economic growth, and global cooperation can be pursued simultaneously through calibrated policy choices.

Looking ahead, this initiative is expected to support smoother trade discussions, strengthen bilateral trust, and align India’s energy narrative with its long-term development goals.

The continuing dialogue has been received positively in New Delhi, where officials see it as a sign of steady engagement and growing mutual understanding between the two strategic partners.

Modi described the conversation as warm and constructive, highlighting shared goals of peace, economic stability, and global cooperation.

Both leaders reviewed recent developments in bilateral ties, reflecting their commitment to sustaining momentum despite ongoing trade challenges.

The tariff increase to as high as 50% on select Indian goods has created friction, but the renewed communication between the two leaders is being viewed as an opportunity to recalibrate trade ties.

India is hopeful that consistent engagement will pave the way for a balanced framework that benefits industries on both sides.

Trade negotiations had previously stalled in July when India resisted widening agricultural market access and declined external mediation on regional matters.

Yet officials suggest that continued diplomatic outreach indicates willingness from both nations to find common ground.

The timing of the call comes as India recalibrates its energy strategy, with refiners reportedly reducing purchases of Russian oil following U.S. sanctions on major Russian suppliers.

This shift has opened additional space for strategic dialogue between Washington and New Delhi on energy security and foreign policy alignment.

U.S. Deputy Trade Representative Rick Switzer’s visit to New Delhi underscores Washington’s interest in strengthening commercial ties at a moment of global economic uncertainty.

The two-day discussion is expected to focus on easing tariff pressures, expanding market opportunities, and reinforcing long-term cooperation.

India is also managing a balancing act as Russian President Vladimir Putin’s recent visit offered assurances of uninterrupted fuel supplies.

While navigating pressures from multiple global powers, New Delhi has emphasized its intention to ensure energy stability without compromising strategic autonomy.

Despite the tariff challenges, India’s export performance shows resilience, with October shipments to the U.S. rising from the previous month.

Trade analysts say this points to underlying strength in India–U.S. economic relations, which remain among the most significant globally.

Washington continues to encourage India to lower tariff and non-tariff barriers for U.S. goods, particularly agricultural products such as soybean and grain sorghum.

India, in response, has stressed the need for mutually beneficial terms that support domestic market stability while encouraging healthy competition.

The broader context of the talks reflects a growing recognition that strong India–U.S. ties contribute to regional and global stability.

With both countries navigating shifting geopolitical realities, their coordination on trade, energy, and strategic issues has taken on added importance.

Many observers see the renewed communication as a constructive step toward resolving disagreements, reinforcing trust, and unlocking fresh economic opportunities.

The proactive engagement between Modi and Trump is expected to keep diplomatic channels open as both sides work toward long-term solutions.

As discussions advance, optimism is building that persistent dialogue will gradually shape a more balanced trade arrangement.

The clarity and confidence expressed by both leaders have helped send a reassuring message to businesses, investors, and strategic partners.

India and the United States continue to frame their partnership as one grounded in democratic values, shared interests, and a forward-looking vision for prosperity.

This latest call has reaffirmed that even amid differences, both nations remain committed to strengthening cooperation and building a more resilient economic partnership.