The United States has recently lifted the ban on Iranian oil to prevent the increase in crude oil prices, allowing for smoother trade of Iranian oil among Asian countries. The decision follows reports of significant oil reserves located in the sea, suggesting ample supply available for potential buyers. Prior to this change, the Iranian oil market was primarily accessed by China, but with the ban lifted, India is now positioning itself to enter this market as well.

According to a report by Reuters, traders indicated that the temporary lifting of the energy-related sanctions on Iran by the U.S. was influenced by the needs arising from the ongoing U.S.-Israel conflict. In response, Indian refineries are considering resuming their oil purchases from Iran, alongside similar discussions happening in other parts of Asia. This shift could potentially diversify the oil sourcing landscape for many countries in the region, rejuvenating demand for Iranian oil.

Reports also highlight that three Indian refiners have expressed their intention to purchase Iranian oil but are currently awaiting guidance from the government regarding payment terms. This development comes amid concerns that India’s crude oil reserves are significantly lower compared to other major Asian nations, making it crucial for the country to explore various sources for oil imports, including possibly tapping into the once-restricted Iranian oil supply.