New Delhi/London, April 10, 2026 — India has allowed a limited number of vessels carrying Iranian crude oil to dock at a western port, granting a special exemption at the request of Reliance Industries Ltd, according to industry sources.
The decision marks a rare move, as India has largely avoided importing oil from Iran since 2019 due to U.S. sanctions.
One-Time Exemption Amid Supply Concerns
Sources said India’s shipping authorities approved a one-time exception for four tankers to berth at Sikka port, which is linked to Reliance’s massive refining operations. The move comes amid disruptions in global oil supply routes, particularly linked to tensions affecting the Strait of Hormuz.
The exemption follows a temporary easing of U.S. sanctions that allowed limited purchases of Iranian oil in an effort to stabilize global energy prices. However, this waiver is expected to expire soon, adding urgency to the shipments.
Tankers and Compliance Challenges
The vessels granted permission include large crude carriers capable of transporting up to 2 million barrels of oil each. Many of these ships are older and have been operating under sanctions, often lacking standard international insurance and certification.
Under normal circumstances, India requires strict safety and compliance checks for older vessels. As a result, special government approval was necessary for these tankers to dock.
Uncertainty Over Final Processing
Despite the approval, it remains unclear whether Reliance will proceed with refining the Iranian crude. Sources indicated that the company is carefully assessing compliance with international sanctions and domestic regulations before making a final decision.
Strategic and Economic Context
India, one of the world’s largest oil consumers, has been navigating a complex energy landscape shaped by geopolitical tensions and supply disruptions. The temporary allowance for Iranian oil highlights the balancing act between meeting energy demands and adhering to global sanctions frameworks.
At the same time, other Indian refiners, including Indian Oil Corporation Ltd, have also shown interest in accessing discounted crude supplies amid volatile market conditions.
Broader Implications
The development underscores the shifting dynamics of global energy trade, as countries adjust policies in response to supply shocks and geopolitical uncertainty.
While the exemption is limited in scope, it signals a potential easing of restrictions under specific circumstances, particularly when energy security is at stake.
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