India signals return to Iran oil after $111m June purchase
India has called for resuming crude oil imports from Iran amid trade tensions with Washington, while official data shows India imported a $111 million shipment of Iranian crude in June.
Indian officials have again told the Trump administration that a significant reduction in Russian oil imports by the South Asian nation’s refiners would require Washington to instead allow crude purchases from sanctioned suppliers Iran and Venezuela.
A delegation visiting the US this week reiterated the request in meetings with American officials, a person with knowledge of the discussions said but asked not to be identified as the talks are private, Bloomberg reported.
Indian representatives have emphasized that simultaneously cutting off Indian refiners’ supply from Russia, Iran, and Venezuela — all major oil producers — could lead to a spike in global prices, people familiar with the negotiations added.
A spokesperson for the US Embassy in New Delhi declined to comment on private diplomatic conversations but added that India’s imports of Russian crude undermined American efforts to counter what it called Russia’s “harmful” activities. India’s Commerce and Oil Ministries didn’t respond to requests for comment.
Meanwhile, Iran’s Mehr news agency cited the Indian Ministry of Commerce and Industry as showing the country imported a $111 million shipment of Iranian crude in June.
The data also showed India bought $94 million worth of petroleum products from Iran between January and July this year. That brought total Iranian oil and petroleum product exports to India in the first seven months of 2025 to $205 million, accounting for 54% of India’s overall imports from the Islamic Republic.
India had halted Iranian oil purchases in 2018 after the United States withdrew from the 2015 nuclear deal with Tehran and pressured buyers to cut imports.
New Delhi’s representatives traveled to the US for talks after Washington imposed crushing tariffs on the country in punishment for its oil trade with Russia. Despite the levies, the South Asian nation has maintained its crude imports from the OPEC+ producer, albeit at a lower rate.
Indian Commerce Minister Piyush Goyal said this week that the country wanted to increase its purchases of American oil and gas, adding that “our energy security goals will have a very high element of US involvement.” He made the remarks in New York.
Russia was forced to discount its crude after many others shunned trade with Moscow due to the war in Ukraine. Almost 90% of India’s oil needs are met by imports, and cheaper Russian barrels have helped to reduce the burden on its import bill. Iranian and Venezuelan oil would also be similarly discounted.
India stopped buying Iranian oil in 2019, and the South Asian nation’s largest private refiner — Reliance Industries Ltd. — halted purchases of Venezuelan crude this year as the US tightened sanctions. Processors can shift to buying more Middle Eastern barrels, but it would come at a higher cost and inflate the overall import bill.