India presses U.S. to allow Iranian oil imports as alternative to Russian crude
India has urged Washington to approve purchases of Iranian oil as it looks to reduce its dependence on discounted Russian crude.
Officials visiting the U.S. this week told the Trump administration that cutting Russian supplies would only be feasible if New Delhi is allowed to source from Iran and Venezuela, according to people familiar with the talks. They warned that blocking all three suppliers could trigger a global oil price spike, News.Az reports, citing foreign media.
The request comes after Washington slapped 50% tariffs on Indian imports of Russian oil in August, accusing New Delhi of helping bankroll Moscow’s war in Ukraine. Despite sanctions, India remains the largest buyer of seaborne Russian crude, while China leads in overall volumes including pipeline deliveries.
Indian Trade Minister Piyush Goyal, speaking in New York, said the country plans to expand purchases of U.S. oil and gas:
“Our energy security goals will have a very high element of U.S. involvement.”
Nearly 90% of India’s oil demand is met through imports, with cheap Russian supplies helping to offset costs. Iranian and Venezuelan crude, currently blocked by U.S. sanctions, could provide similar discounts.
India halted Iranian imports in 2019 and Reliance Industries, its top private refiner, stopped Venezuelan purchases this year under U.S. pressure. Current alternatives from the Middle East and the U.S. are more expensive — with Russian barrels averaging $68.90 in July, compared to $74.20 from the U.S. and $77.50 from Saudi Arabia.
Looking ahead, analysts expect the global oil market in 2026 could face oversupply as OPEC+ and independents ramp up production, potentially weighing on prices.
At the UN General Assembly, President Donald Trump denounced India and China as the “biggest sponsors” of Russia’s war, citing their crude purchases.
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