With a focus on “market factors and the prevailing global situation,” India’s Ministry of External Affairs (MEA) has clarified the nation’s stance on importing crude oil from Iran. During a recent weekly briefing, MEA spokesperson Randhir Jaiswal said that practical evaluations of market conditions and global developments, rather than just political considerations, determine India’s energy purchases.
The timing of this clarification coincides with increased tensions in West Asia, especially in the wake of Israeli attacks on Iranian nuclear scientists and some universities. The MEA reiterated India’s commitment to peace and diplomacy while expressing profound concern over the escalation.
In order to restore peace, security, and stability in the region, Jaiswal emphasized India’s persistent support for communication and a return to diplomatic engagement. He added that the International Atomic Energy Agency (IAEA) has reported only limited radioactive contamination thus far, with no significant nuclear material impacted, and that India is closely monitoring updates from the IAEA regarding radiation levels at the affected sites.
India’s oil import strategy has changed in response to these geopolitical uncertainties in order to protect against the risk of disruptions in West Asian supply. Indian refiners have been forced to diversify their sources due to the ongoing Israel-Iran conflict and threats to close the Strait of Hormuz, a vital chokepoint for global oil flows.
Indian oil imports from the US and Russia have increased dramatically, with US import volumes also rising sharply and Russian crude now accounting for the majority of imports. By diversifying, India hopes to protect itself from possible supply disruptions and price volatility associated with unrest in the Middle East.
The MEA’s statement leaves the door open for future engagement should market conditions and the global situation permit, even though India does not currently import significant volumes of oil from Iran due to US sanctions. The government’s increased reliance on US and Russian oil, along with its willingness to use strategic reserves and enact domestic price support measures if necessary, demonstrate its risk-hedged approach.
With an emphasis on maintaining energy security in the face of international unpredictability, India’s oil import policy is still flexible and market-driven. While maintaining a practical and diverse approach to energy sourcing, the government continues to keep a close eye on regional developments and promote peace and diplomatic solutions.
