India has bought oil and gas from Iran for the first time in seven years.
This comes amid supply disruptions due to blockages in the Strait of Hormuz.
“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, contrary to the rumours being circulated,” the Ministry of Petroleum and Natural Gas said in a post to X.
India stopped purchasing oil from Tehran after the United States imposed sanctions on Iranian oil.
These sanctions have since been lifted to ease supply shortages. This waiver is expected to remain in place until 19 April.
The ministry also said India has secured its full requirements of crude oil for the coming months.
India reportedly bought 44,000 metric tons of Iranian liquefied petroleum gas loaded on a sanctioned vehicle.
Arpit Chaturvedi, a South Asia advisor at Teneo, told CNBC that India does not intend to take sides in the ongoing U.S.-Israel conflict with Iran.
There are currently 17 Indian-flagged vessels awaiting safe passage through the strait, and seven have crossed the route in recent weeks following diplomatic engagement with Tehran.
According to the Times of India, before sanctions tightened in 2018, India was among the largest buyers of Iranian crude.
At its peak, Iranian crude accounted for around 11.5%.
Around 40% of India’s oil travels through the now-blocked Strait of Hormuz.
India has also ramped up purchases of Russian crude to offset potential shortages.
This comes after India cut back on Russian oil imports and increased purchases from the Middle East to secure a trade deal with the U.S.
The Trump administration also imposed an additional 25% tariff on Indian exports and accused New Delhi of funding Russia’s war with Ukraine by importing cheap crude oil from Moscow.
The average price of the Indian crude basket surged from $69 per barrel in February 2026 to $113 per barrel in March due to a “steep rise in procurement costs,” Pankaj Srivastava, senior vice president at Rystad Energy, told CNBC in an email.
