Two very large crude carriers (VLCCs) carrying Iranian oil have reached India, marking the first such shipments in nearly seven years, according to ship tracking data from LSEG. The development came hours ahead of the US’s move to block all Iranian ships trying to enter or leave the Strait of Hormuz following failed US-Iran ceasefire talks in Islamabad.
The Iran-flagged VLCC Felicity has docked at Sikka port in Gujarat, while the Curacao-flagged tanker Jaya has arrived near Paradip port in Odisha. Each VLCC typically carries around two million barrels of crude oil.
India’s receiving of Iranian oil shipments came after a temporary US waiver allowed refiners to resume purchases of Iranian crude for a limited period, aimed at easing global oil prices amid the Iran war. The waiver, however, is set to expire on April 19, adding uncertainty to future imports.
India, the world’s third-largest oil importer and consumer, had halted Iranian crude imports in May 2019 following US sanctions pressure. The recent shipments mark the first known deliveries since then.
Indian Oil Corporation has purchased Iranian crude carried on the Jaya, despite the vessel being under US sanctions. Reliance Industries Ltd, operator of the world’s largest refining complex, has also been permitted to source Iranian oil transported on several sanctioned and ageing tankers, including Felicity and others.
The Felicity, operated by the National Iranian Tanker Company, reportedly loaded crude at Kharg Island in mid-March before anchoring off Sikka late Sunday. The Jaya is said to have lifted oil in late February, before geopolitical tensions escalated following strikes and counterstrikes involving Iran.
Historically, Iran was a major supplier to India, with imports peaking at over 5 lakh barrels per day in 2018, accounting for more than 11 per cent of total crude imports. However, shipments stopped after US sanctions tightened in 2018, with India switching to alternative suppliers from the Middle East, the US and elsewhere.
The current one-month exemption allows the sale of Iranian oil already in transit, intended to stabilise global energy markets. However, the situation remains uncertain as the US is set to enforce a blockade of the Strait of Hormuz from Monday 10 am ET (7:30 pm IST).
The US military said the blockade would be enforced “impartially against vessels of all nations”, accessing Iranian ports and coastal areas, including facilities in the Arabian Gulf and the Gulf of Oman. However, it said that the blockade will not impede neutral transit passage through the strait to or from non-Iranian destinations.
Iran warned that no port in the Persian Gulf or Sea of Oman would remain safe if its own ports are targeted. The move follows failed US-Iran ceasefire talks in Islamabad, with tensions escalating and oil prices surging amid fears of wider regional fallout.
– Ends
(with inputs from Reuters)
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