The first Iranian LPG cargo is due to arrive this week, with more crude and LPG shipments expected in the coming days. Refiners are in talks with National Iranian Oil Co. to secure as many crude and LPG cargoes as possible at the earliest, though the exact volumes expected in the short term remain unclear, said the people cited. “Some deals have been finalised,” a person familiar with refiners’ oil purchases said.
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“Others are still being negotiated. Until ships carrying Iranian oil leave the war zone and move in our direction, it would be hard to count on those cargoes,” the person added.
The Iranian embassy said on X, citing Araghchi, “We permitted passage through the Strait of Hormuz for friendly nations including China, Russia, India, Iraq and Pakistan.”
Reliance Industries on Thursday denied a media report that it had purchased Iranian-origin oil.
Four India-flagged LPG-loaded ships have crossed the strait in the last 10 days, enough to meet about two days of national consumption.“The Strait of Hormuz, from our perspective, is not completely closed—it is closed only to enemies,” Araghchi said on Iranian state television. “There is no reason to allow the ships of our enemies and their allies to pass.” Cargoes from other countries in the Gulf have been stranded due to threat of Iranian missiles. Several ships, including 20 India-flagged ships, are stuck in the Persian Gulf.
The comments followed a call by UN secretary general Antonio Guterres to reopen the strategic waterway. “The prolonged closure of the Strait of Hormuz is choking the movement of oil, gas and fertilizer at a critical moment in the global planting season,” Guterres said in a post on X. “Across the region and beyond, civilians are enduring serious harm and living under profound insecurity. The UN is working to minimise the consequences of the war. And the best way to minimise those consequences is clear: End the war—immediately.” Indian refiners are scrambling to secure oil and gas supplies—especially LPG, for which dependence on the Gulf region is high—from across the world to avert a fuel crisis. Iranian shipments would face no transit disruptions and can reach India much faster than scarce, long-haul alternatives from outside the Gulf. India stopped buying oil from Iran in 2019 after the US imposed sanctions, which made it off-limits for Indian buyers. Before the sanctions, Iranian supplies accounted for 10% of India’s crude imports.
The country imports 60% of its LPG needs. Since the war began, India’s domestic LPG production has been ramped up by 40%, enough to meet about 56% of total consumption, but imports will still be needed. LPG supplies are even more critical than crude, as the fuel is predominantly used for cooking in the country.
During March 1–18, India’s crude imports were about 23% lower than in the month-ago period, according to shipping data from energy intelligence company Vortexa.
If the Strait of Hormuz remains closed for the rest of the month, analysts estimate—based on ships headed towards India—that crude imports for the full month of March could be lower by about a fifth.