April 4, 2026 (Bloomberg) — India is purchasing crude oil from Iran and other countries to handle the ongoing energy crisis, according to the country's oil ministry, which has denied any payment issues are affecting these purchases.

This acknowledgment of energy ties with Iran is significant, as India had largely moved away from such dealings due to US sanctions. However, recent conflicts and a waiver from Washington allowing purchases of Iranian crude have allowed India to renew its ties. The oil refining sector has been struggling with various trading, shipping, and banking challenges, as Tehran still faces strict sanctions.

The ministry stated on X, “Amid disruptions in the Middle East supply, Indian refiners have secured their crude oil needs, including imports from Iran,” adding that there are “no payment hurdles for Iranian crude imports, contrary to circulating rumors.”

Furthermore, the ministry refuted claims that an Iranian crude vessel was redirected from Vadinar, India, to China due to payment concerns, explaining that the destinations of vessels often vary.

They also confirmed the arrival of Iranian liquefied petroleum gas, with a ship carrying about 44,000 tons currently unloading in Mangalore, as mentioned in their statement.

The ongoing conflict in the Persian Gulf has hit India hard, especially with the effective closure of the Strait of Hormuz. Until recently, India, the world's third-largest oil importer, relied on the Middle East for around half of its crude oil and most of its LPG, which is used for cooking.

Since the invasion of Ukraine in 2022, India has increased its purchases of seaborne Russian crude but has generally avoided oil from Venezuela and Iran due to concerns about US sanctions.

Since the start of the conflict, India has been negotiating with Iran for the safe passage of vessels that were previously stuck in the Persian Gulf.