The morning of June 24, 2026 brought a big relief news for India. America has lifted the sanctions on Iran’s crude oil. But this is not just a diplomatic news for India, rather it is going to have a direct impact on the prices of petrol and diesel, inflation and the government treasury. Let us understand the explainer why India can benefit so much from this step of America…

First understand what has happened?

In 2018, when Donald Trump became the President of America for the first time, he imposed strict sanctions on Iran. Many countries including Iran were banned from buying oil from Iran. As a result, India had to give up its favorite and cheap Iranian oil. But now in 2026, the Trump administration has once again opened the same path.

A peace agreement has been signed between America and Iran in the Strait of Hormuz and under this, America announced the lifting of the ban on Iranian crude oil. This relaxation has been given till 21st August 2026, that is, it is a temporary relief, but it is of great importance for India even in a short time.

India’s oil story and Iran’s role

India is the third largest oil importing country in the world and imports more than 85 percent of its crude oil requirement from outside. There was a time when Iran was the second largest oil supplier to India. Before the sanctions, India used to buy about 4.5 lakh barrels per day of Iranian oil every month. But after 2019 this figure became absolutely zero. Since then, India has increased its oil purchases from Iraq, Saudi Arabia and especially Russia. After the Russia-Ukraine war, Russian oil came to the top in India’s basket.

The discount available on Russian oil is continuously decreasing. Many times its final cost increases due to problems in shipping and insurance. In such a situation, opening the route to Iran can prove to be four boons for India:

1. Cheap oil and low import bill

Iranian crude is usually 8 to 10 dollars cheaper per barrel than Brent crude. Iran also often offers better credit terms and lower freight charges on its oil, because India is an old and reliable customer for it. When you buy millions of barrels of oil, the savings of $8-10 per barrel directly reduces the import bill by billions of dollars.

If we look at the government data, India’s total crude oil import bill had crossed approximately $ 140 billion in the financial year 2025-26. If even some part of this amount is shifted to cheap Iranian oil, it will not only save foreign exchange but will also control the current account deficit. This has a direct impact on the strength of the rupee.

2. Effect on petrol-diesel and inflation

With the arrival of cheap crude oil, the costs of companies will reduce and if the government wants, it can extend its benefits to the common man. The prices of petrol and diesel have been stable for some time now, but the pressure of turmoil in the international market always remains. Iranian oil provides companies with the opportunity to improve margins and, if necessary, scope to cut prices.

This has an even bigger impact on inflation. Crude oil prices are not limited to just fuel, they make everything from vegetables to milk expensive by increasing transportation costs. Cheaper oil means cheaper transportation of all items, which can provide relief to the kitchen budget.

3. Opportunity to reduce dependence on Russia and the Middle East

For India, it is not just a question of price but also of strategy. At present, our oil imports are largely dependent on a few countries like Russia, Iraq and Saudi Arabia. Being too dependent on any one supplier is not good for the energy security of any country.

Iran’s withdrawal will give India an opportunity to further increase its oil sources. This is a kind of risk management, that is, if there is any interruption in supply from Russia or OPEC+ countries cut production further, then Iran will be a better option.

According to a Times of India report, India is also a good buyer of high-sulphur crude for its refineries. Iran’s oil fits perfectly in this context. India’s refineries like Jamnagar, Vadodara and Mangalore can easily process Iranian grades.

4. Easy way to pay

Earlier, India used to pay Iran in rupees, a part of which Iran used to spend on the purchase of Indian goods. This promoted two-way trade and reduced dependence on the dollar. However, the report of Financial Express clearly says that it is not yet clear how payment will be made in this temporary exemption.

Experts believe that the old rupee-riyal currency arrangement can be resumed. If this happens then it will be like icing on the cake for India. On one side, cheap oil and on the other side, shopping without spending dollars.

But is it so easy to buy oil?

Foreign affairs expert and JNU professor Rajan Kumar says, ‘This is not a completely rosy picture, because this relaxation is only till August 21, 2026. This means that there will be a limit to the amount of Iranian oil that India can buy in less than two months. Ordering so much oil in such a short time can pose challenges in shipping, insurance and logistics.

According to CNBC report, this relief is completely dependent on the implementation of the peace agreement. If tensions increase again, restrictions may be imposed.

Apart from this, the statement of the US State Department clearly states that this is a limited and conditional exemption. This means that India will have to take steps very carefully so that other aspects of US sanctions are not violated.

What steps did the Indian government take to purchase oil?

The Indian government and oil companies have already started preparations to get the first consignment from Iran as soon as possible. Big companies like Indian Oil Corporation and Bharat Petroleum have started talks on commercial terms. It is expected that if this exemption is extended, India can once again become Iran’s largest oil customer.

The agreement was signed on Thursday (18 June 2026) to end the months-long conflict and tension between America and Iran. The purpose of this agreement is to extend the ceasefire between the two sides and to resume shipping transit through the Strait of Hormuz. With this deal, the global energy supply chain is also expected to become normal. Meanwhile, Iran’s Ambassador to India, Dr. Mohammad Fathali said that Iran has huge potential to meet the energy needs of India.

Sanctions lifted on Iran

Under the 14-point agreement between America and Iran, all the sanctions imposed on Tehran have been lifted. Iran can now sell oil to the world. In an interview given to news agency ANI, Mohammad Fathali said, ‘India needs reliable, stable and affordable energy supply. Iran has great capacity to meet these needs. If the sanctions are removed and the situation becomes normal, then there is no doubt that Iran can once again become one of the main oil suppliers to India.

‘Iran will meet India’s oil needs’

He said, ‘Iran is one of the world’s largest oil producers and exporters. Our policy has always been to make our energy resources available to all those countries who want us. Historically, India has been one of Iran’s most important oil customers. Energy cooperation between the two countries has a long and successful track record. India needs reliable, stable and affordable energy supply and Iran has great potential to meet these needs.

The Iranian ambassador said, ‘If the sanctions are removed and the situation becomes normal, then there is no doubt that Iran can once again become one of the main oil suppliers to India. We hope that after the complete lifting of sanctions, not only will Iran’s oil exports to India resume, but bilateral trade and joint investments will also surpass their previous highs and reach levels commensurate with the real potential of our two countries.

China is the biggest buyer

China has been buying about 90% of Iran’s total oil exports. An agreement worth $400 billion (about Rs 33 lakh crore) was signed between the two countries in 2021, under which Iran supplies oil to China at concessional rates. This agreement is for 25 years. During the recent war between Iran and America, the oil supplied to China was also affected. In such a situation, after the sanctions on Iran are lifted, it will start supplying oil to China as before.

Also read: Here US-Iran deal, on the other side India is going to get great news tomorrow! Shortage of LPG will go away

‘Good night, take care of the children…’ Chief Engineer Patnala Suresh had sent this last message to his wife on the night of June 9. Next morning his wife’s ‘Good morning’ remained unnoticed. An American missile tore into the engine room of their ship MT Settebello in the Gulf of Oman. Indian sailors 44-year-old Suresh, 23-year-old deck cadet Aditya Sharma and 37-year-old engine fitter Shivanand Chaurasia were killed in the attack. The dreams of the wife preparing for her one year anniversary, the elderly parents who have lost their only son and the young cadet who left saying ‘Papa is coming soon’ were destroyed. Three families are sitting with one question without any concrete answer – ‘Why did our loved ones have to die?’

Three dead bodies and three devastations – family by family story

1. Aditya Sharma- Deck Cadet, Himachal Pradesh

Aditya Sharma was a deck cadet, i.e. a student who was dreaming of becoming a ship’s officer in the future. In November last year, he had left for China from Dubai and was scheduled to return home in May 2026. But due to some reasons his duty was increased.

When his father Rajesh Sharma spoke to him in May, Aditya had said, ‘Papa, I will stay for one more month, then I am definitely coming home.’ He was last able to talk to his father on phone on June 8. He told them that the ship was heading towards Oman and the captain was planning to enter the Gulf area. The father was a little worried, but he thought that merchant ships are never attacked. After the attack, father Rajesh told the media, ‘I was not worried. Such ships are not attacked. What happened was completely surprising. This was wrong.

When the news of the attack spread, there was panic in the family. Aditya’s uncle Sanjeev got a call around 9 pm on June 9 that Aditya was missing. He immediately reached his brother’s house in Jalandhar. They kept trying to contact the company the whole night, but did not get any information. At 1:30 in the night they came to know that Aditya is no more in this world.

Aditya’s grandfather Ashok raised the biggest question, ‘We want to know that when the captain was warned not to proceed further, in what capacity did he proceed with the ship? We want investigation. Taking aim at America, father Rajesh also asked that 21 crew members were saved, but how were three killed?

Another shocking revelation was made by Rajesh that he himself used to track the location of the ship and often noticed irregularities in the location. Sometimes the navigation system would show the old location, and sometimes the tracking device itself would be switched off. When Aditya was asked, he said that sometimes the tracking device is switched off deliberately.

2. Shivanand Chaurasia, Engine Fitter, Uttar Pradesh

Shivanand lived in Surauli village of Deoria district of Uttar Pradesh. He had boarded the ship from Mumbai and worked as an engine fitter. He was the sole breadwinner for his wife Sushila and family. His dreams were very simple – to educate children, run a household and perhaps someday build a small house of his own.

There was mourning in the village due to the death of Shivanand. The relatives’ eyes were on the American plane, which destroyed the hopes of an ordinary family by firing a missile. Shivanand was one of the millions of Indians who connect with the world through sea and feed their loved ones through their hard work.

The family has raised the question as to how a civilian on board a commercial ship was targeted by the US Army without any clear warning. Their demand is that there should be a complete investigation into the matter and action should be taken against the culprits.

3. Patnala Suresh, Chief Engineer, Andhra Pradesh

The most painful story among the three is probably that of Suresh. 44-year-old Suresh was the chief engineer of the ship. He was the only earning member of his family. Wife Bhargavi, two sons (13 and 10 years old) and two nieces, who were also being brought up by him.

Suresh had spent about 15 years in the sea. Every year he got six months leave, but he rarely took the entire leave. He loved his work. This time too he had left for a small assignment, but due to operational delays and increasing tension, his return was postponed.

When the American missile hit the engine room of the ship on the intervening night of June 9-10, Suresh was investigating a fault in a generator there. The direct target of the missile was the engine room itself. There was no chance of escape from there.

Bhargavi told that their last conversation was on the night of June 8. Suresh had messaged him – ‘Good night. Take care of the children. Next morning, when Bhargavi sent a good morning message as usual, there was no response. Bhargavi said, ‘I kept thinking that maybe he was busy. He is usually not on deck at that time.

Suresh’s family was preparing to celebrate his anniversary on 24th June. This was his 15th anniversary. Suresh had already received his relieving letter and was just waiting for his replacement to return home. That replacement never came.

Bhargavi told BBC, ‘There have been attacks there (in the Gulf region) and some people have been killed. But he told me, ‘Don’t worry about me. I will come home safely and we will celebrate our anniversary properly’

When Bhargavi contacted the superintendent on the morning of 11 June, he was told that 21 crew members had survived, but three were missing. By nightfall, two bodies were found, but Suresh was still missing. Suresh’s body was found the next day at around 1 pm.

Bhargavi told PTI, ‘We were four. Now there are three of us. This one thing sums up everything that this accident took away.

What are the main demands of the families?

The demands of these three families are almost the same. Those are the most basic things that any person needs when he loses someone:

• Immediate return of dead bodies: The first thing every family wants is that the mortal remains of their loved ones should be sent to India as soon as possible, so that their last rites can be performed with respect. Aditya’s family is waiting for him in Himachal, Shivanand’s village is desperate to see him for the last time and Suresh’s wife is still demanding his photograph.
• Better Compensation: Suresh was the only earning member of the family. The future of two children and two nieces now hangs in balance. The families have demanded financial assistance from the government.
• Independent investigation: The families have no confidence that the US military’s own statement will be true. They want an international independent investigation to find out what really happened.
• Accountability: Aditya’s grandfather directly asked that when the captain was warned to proceed, why did he do so? When 21 people can survive, why couldn’t three survive? The families want the truth, not just compensation.

What did America say and what is the ship operator’s side?

US Central Command (CENTCOM) says the ship violated the US blockade, did not stop despite repeated warnings and was carrying Iranian oil. Because of this, the American fighter plane attacked the engine room with a precision missile.

The ship’s operator iOS Marine rejected this claim. The company says that the ship was carrying out completely legitimate commercial work, had nothing to do with Iran, nor had it received any warning before the attack. The company has demanded an independent international investigation into the matter.

What did the Indian government do?

The Indian government immediately took action at the diplomatic level. The Ministry of External Affairs (MEA) summoned US Charge d’Affaires Jason Meeks and lodged a strong protest. MEA spokesperson Randhir Jaiswal said India conveyed its ‘deep concern’ to the US and demanded a halt to such attacks.

Shipping Minister Sarbananda Sonowal posted on Twitter that efforts were underway to bring back the bodies of the dead sailors and that their deaths were a ‘deep loss’ to India’s maritime community. However, the bodies have not yet reached India. The families are confused as to when their loved ones will return and will they ever know the truth?

Amidst the war with Iran, America has banned China’s major oil refinery Hengli Petrochemical and 40 shipping companies and tankers, after which Beijing has now reacted strongly. Beijing said it strongly opposes US sanctions on Chinese oil refineries and is determined to protect its interests.

America had taken action against China for purchasing oil from Iran because it had imposed a ban on Tehran’s oil export, despite that China was continuously purchasing oil from it. The US Treasury Department had said that the purpose of these sanctions is to completely stop Iran’s main source of income – oil exports.

Also read- Iran is ready to open Hormuz, put a big condition before America, what will Trump do now?

Hengli is China’s largest refinery

China’s largest refinery Hengli Petrochemical, which processes about four lakh barrels of crude oil daily, has also been hit by these sanctions imposed by the Trump administration. The US Finance Department says that Hengli Refinery has been consuming Iranian oil since 2023. This refinery is said to be one of the major buyers of Iranian oil.

What action was taken against China?
US Finance Secretary Scott Besant, while taking action against China, had said that the Trump administration is tightening the financial grip on the Iranian regime. This will help in stopping its aggression in the Middle East and curbing its nuclear ambitions. In this action, about 40 shipping companies and ships have also been targeted, which are considered part of Iran’s so-called ‘Shadow Fleet’.

Also read- America’s big action amid war with Iran, ban on China’s refinery, why did Donald Trump take this decision?

Action will be taken against whoever is involved in this: Besant

Giving a strong message to the countries of the world, America said that action will be taken against any ship which transports Iranian oil to other countries, which strengthens the Iranian regime. Scott Besant also said that on the instructions of Donald Trump, America will continue to take action against the ships, middlemen and buyers who help in delivering Iranian oil to the world markets. He warned that any person or ship involved in this work may have to face American sanctions.

Cheapest Oil India: Amidst rising global tensions and fluctuating fuel prices, India’s crude oil procurement strategy has become more important than ever. Global trade routes are changing due to supply disruptions and restrictions. In such a situation, India is actively importing oil from many countries. Let us know which country is at the forefront in terms of cheapest source.

India’s most affordable oil supplier

At present, Russia is India’s largest and cheapest supplier of crude oil. India is importing oil from Russia at the rate of about $94 per barrel. This is much lower than other global suppliers. Russia’s share in India’s total imports has been between 31% to 41%.

However, after the Ukraine war, Russia initially offered a huge discount of up to $35 per barrel. However, due to geopolitical pressure and sanctions, this discount has now reduced to just $2 to $3 per barrel.

Venezuela and Iran

India is looking for new low-cost options like Venezuela and Iran. Venezuela has re-emerged as a supplier after the US eased sanctions. Similarly, Iran has restarted the supply of oil to India after almost 7 years.

traditional supplier

Apart from concessional oil sources, India also continues to import oil from countries like America, Saudi Arabia, Iraq and United Arab Emirates. Of these, America is the most expensive supplier. Saudi Arabia, Iraq and UAE remain major suppliers due to their reliability. But their prices are usually higher compared to Russia.

Logistics and transportation costs

The role of transportation in the total cost is very important. It takes only three days for oil from Saudi Arabia to reach India. Along with this, its freight cost is also less. This makes it a decent option despite the base price being high. In comparison, Russian oil takes about 15 days to reach. Along with this, the consignment coming from USA may take 45 to 50 days.

Also read: High-voltage drama going on on Hormuz, US and China clash with each other, then which country suffers the most?

Donald Trump: US President Donald Trump has given a big statement on Saturday. He said that instead of buying oil from Iran, India will buy oil from Venezuela. He made this statement while talking to reporters on his official plane Air Force One en route to Florida.

Trump said, “We have already made that deal. The concept of the deal is done.” He explained that ‘Concept of Deal’ means the basic structure of the deal, its understanding or preliminary agreement between the two parties before finalizing the deal.

‘China is also welcome’

Trump also said that if China wants, it can make a deal with America to buy oil from Venezuela and it is welcome.

US strategy and previous sanctions

Earlier, this information had come to light that America had told the Indian government that it can soon resume the purchase of oil from Venezuela, so that oil imports from Russia can be replaced. Three sources gave this information to Reuters.

The US move is seen as an attempt to reduce oil revenues that finance Russia, which is helping in the Ukraine war. In March last year, Trump had imposed a 25% tariff on countries buying oil from Venezuela, including India.

US President Donald Trump gave a big statement

US President Donald Trump had earlier praised the US-led initiative in the matter related to Venezuela. He said that this process is moving in a very positive direction and the export of oil from Venezuela is expected to resume soon. This entire system has been prepared with the support of Washington. During a conversation with the media in the Oval Office, Trump said, “The leadership is doing a very good job in the Venezuela situation. We are moving forward by maintaining better coordination with everyone associated with this entire process.”

He also told that many countries of the world will soon start buying oil from Venezuela and America will play an important role in this initiative. “We’re inviting the countries of the world. They’re going to start taking the oil. We’ll lead this whole plan, and so far it’s working very well,” Trump said.

US agencies have imposed sanctions on eight Indian citizens and ten companies for their links with Iran’s oil and petrochemical business. This action is part of the new round of international sanctions. The US State Department and the Treasury Department have altogether imposed sanctions on more than 100 individuals, companies and vessels. The names of many Indians and India-based companies have been included in the list of the Office of Foreign Assets Control (OFAC) of the US Treasury Department.

Many Indian citizens in US Treasury’s list
The names of Mumbai’s Niti Umesh Bhatt, Kamala K Kasat, Kunal Kasat and Poonam Kasat are included in this action of America. Apart from this, sanctions have also been imposed against Tamil Nadu-born Ayyappan Raja, Tirupati’s Varun Pulla, Piyush Maganlal Javia and Sonia Shrestha. All of them are accused of playing an important role in the oil and gas business related to Iran and violating US sanctions.

Accusations of sending Iranian LPG to China and Pakistan
US officials say Varun Pulla’s company Bertha Shipping transported approximately four million barrels of Iranian LPG to China using a Comoros-flagged ship. Similarly, Ayyappan Raja’s company Ivy Lines, based in the Marshall Islands, sent one million barrels of LPG to China through a Panama-flagged ship. Sonia Shrestha’s India-based company Vega Star Ship is accused of supplying LPG from Iran to Pakistan using Comoros flagged ship ‘NEPTA’.

Indian companies accused of large scale imports
According to the US State Department, between January 2024 and January 2025, India’s CJ Shah & Company imported petrochemical products worth $44 million from Iran. Zavia’s company Chemovic is accused of importing Iranian petrochemical products worth seven million dollars. BK Sales Corp is accused of importing Iranian products worth $235 million, while Modi Chem is accused of importing Iranian products worth $49 million between January 2024 and February 2025.

Additionally, Parikem Resources imported petrochemical products worth $2 million from several companies between May and November 2024. These include Shivanani Organics FZE, which is included in the US sanctions list. These products also contained chemical ingredients like toluene.

American action against Harris Petrochem and Indisol also
Niti Bhatt’s company Indisol is accused of shipments worth $74 million between January and December 2024. Similarly, Haresh Petrochem, a company of the Kassat family, imported products of Iranian origin worth 10 million dollars in the next 13 months from January 2024. All these transactions have been considered a violation of US sanctions.

America’s strict message
America has made it clear that it is not going to spare any country, company or person associated with Iran’s oil and petrochemical business. Washington says that through such actions it wants to make the international sanctions imposed on Tehran more effective.