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Iran offers discounted crude to India after US sanctions waiver
27 Jun 2026

After a recent sanctions waiver from Washington, multiple middlemen have started offering discounted Iranian oil to Indian refiners.

The move comes as Tehran seeks to ramp up its sales.

The United States on Monday waived sanctions on Iran for 60 days, following initial talks under a fledgling peace deal. This has opened a small window for renewed energy trade.

NIOC directly approaching Indian refiners
Direct offers

The National Iranian Oil Company (NIOC) has directly approached Indian refiners with offers for discounted Iranian crude.

The company is said to be offering these at a price $3-$4 per barrel cheaper than similar regional grades on a landed basis.

Apart from NIOC, several traders from small and mid-sized trading companies in Singapore and Dubai are also reaching out for the sale of Iranian oil.

Indian refiners have limited capacity to take in Iranian crude
Supply challenges

Despite the offers, Indian refiners have limited capacity to take in Iranian crude in the near term.

Most of them have already booked supplies until August, and Middle Eastern term suppliers are pushing buyers to honor annual contractual commitments.

However, under the sanctions waiver, India could see an increase in Iranian LPG flows through traders.

Payments for Iranian oil settled in Chinese yuan
Negotiation hurdles

Commercial negotiations for the increased Iranian LPG flows could take time due to unclear payment mechanisms and banking channels.

In April, India had received two cargoes of Iranian oil after Washington granted a 30-day sanctions waiver.

Payments for these were settled in Chinese yuan, indicating a possible alternative payment method amid ongoing international sanctions on Iran's oil trade.