Indian refiners have purchased approximately 60 million barrels of Russian crude for April delivery at prices significantly above global benchmarks, according to Bloomberg. This marks a sharp reversal from the deep discounts previously available, as supply disruptions stemming from the U.S.-Israeli conflict with Iran have tightened the market.
The buying surge follows the closure of the Strait of Hormuz, a critical chokepoint for around 20% of the world’s daily oil supply. The disruption has driven Brent crude prices as high as $120 per barrel this month and shifted demand toward readily available Russian supplies. The cargoes were bought at premiums of $5 to $15 above Brent, a notable change from the earlier discount structure.
This procurement volume is more than double India’s Russian oil imports in February, based on data from Kpler. The activity was enabled by a U.S. sanctions waiver initially announced earlier this month. The 30-day measure, later expanded, permits the import of Russian oil that was loaded onto tankers before March 5, and subsequently before March 12, to avoid shortages caused by the Hormuz closure. S&P Global Commodities at Sea data confirms a dramatic recent increase in India’s Russian oil imports.
The shift highlights India’s strategic recalibration. After becoming a key market for Russian oil since 2022—importing nearly 2 million barrels per day in 2024—India had scaled back purchases late last year under U.S. pressure, increasing instead its intake from Saudi Arabia and Iraq. However, much of that Middle Eastern oil became trapped in the Persian Gulf following the Hormuz shutdown, squeezing availability and prompting the pivot back to Russian crude.
India’s energy security is heavily reliant on imports, sourcing 85% of its oil and nearly half of its natural gas from abroad. Approximately half of its crude oil and liquefied natural gas (LNG) shipments transit the Strait of Hormuz, making the current closure a direct threat to supply chains. According to Bloomberg’s sources, officials in New Delhi anticipate the U.S. waiver will be extended for as long as the strait remains disrupted.
The situation underscores the fragility of global oil logistics amid geopolitical conflict. For India, the immediate priority is securing physical cargoes, even at a premium, to maintain refinery operations and fuel domestic demand. The waiver’s duration will be pivotal in determining whether India sustains this high-volume, high-cost purchasing pattern or seeks alternative supplies as the Hormuz crisis evolves.
