Reliance Buys 5 Million Barrels of Iranian Oil with US Waiver Approval

• The U.S. waiver applies to Iranian oil loaded on vessels by March 20 and discharged by April 19, temporarily lifting sanctions to ease supply shortages
• Reliance operates the world's largest refining complex and bought the crude at a premium of about $7 per barrel to ICE Brent futures
• Indian refiners previously purchased over 40 million barrels of Russian crude after similar U.S. waivers this month, while China's Sinopec declined to buy Iranian oil

Summary: Reliance Buys 5 Million Barrels of Iranian Oil with US Waiver Approval

Key Transaction Details:

Reliance Industries, operator of the world's largest refining complex, has purchased 5 million barrels of Iranian crude from the National Iranian Oil Company. The oil was priced at approximately $7 per barrel premium to ICE Brent futures, though delivery timing remains unclear.

Regulatory Context:

The purchase follows a 30-day US sanctions waiver issued by the Trump administration on Friday, March 21. The waiver permits purchases of Iranian oil already at sea—specifically, oil loaded on vessels (including sanctioned tankers) on or before March 20 and discharged by April 19.

Market Significance:

This marks India's first Iranian oil purchase since May 2019, when the country halted imports after Washington reimposed sanctions on Tehran. India is the world's third-largest oil importer and consumer. Iranian crude has primarily been purchased by Chinese independent refiners in recent years and is often rebranded with alternative country-of-origin labels.

Broader Implications:

The deal follows Indian refiners' recent acquisition of over 40 million barrels of Russian crude after US sanctions easing this month aimed at addressing supply shortages. Other Asian refiners, including Indian state firms, are evaluating similar purchases. However, China's Sinopec, Asia's largest refiner, announced it will not purchase Iranian oil.

Company Response:

Reliance Industries did not respond to Reuters' request for comment on the transaction.

The purchase signals India's strategic move to diversify oil supplies amid shifting geopolitical sanctions landscapes and global supply concerns.