Delhi And Tehran Explore Energy Cooperation As US Sanctions Ease

01 Jul 2026 CW Team

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri met his Iranian counterpart Mohsen Paknejad and conveyed that India remained committed to enhancing energy security through dialogue. The Iranian Oil Ministry said Paknejad emphasised the need to strengthen cooperation with New Delhi. Ministers reviewed opportunities in oil and gas and explored mechanisms for collaboration.

The renewed engagement followed a US decision to issue a 60-day temporary general licence permitting production, sale, transportation and import of Iranian crude, petroleum products and petrochemicals until August 21, according to a Wall Street Journal report. The waiver was said to allow associated banking, insurance and shipping services and to permit payments in US dollars. Officials said the reprieve created a window for diplomatic and commercial engagement.

India had been among the largest importers of Iranian crude before sanctions forced refiners to halt purchases in 2019, and at its peak Iranian crude accounted for more than 11 per cent of India's oil imports. Indian refiners resumed limited purchases in April, taking 500,000 tonnes (t) of crude after a gap of nearly seven years following a 30-day waiver that lapsed on April 19. India meets nearly 88 per cent of its crude requirement through imports and has secured supplies through August 2026.

The discussions with Tehran took place as energy security assumed greater priority amid geopolitical tensions, supply chain disruptions and volatility in global oil markets. Paknejad also held talks with the Union Minister of Power and Housing and Urban Affairs, signalling a broader agenda of bilateral engagement. The BRICS Energy Ministers' Meeting, held under India's BRICS chairship in 2026 with the theme Energy for All, concluded on Friday.

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India and Iran have agreed to explore cooperation in the oil and gas sector after a temporary US sanctions waiver opened access for Iranian crude to global markets. The understanding was reached on the sidelines of the 11th BRICS Energy Ministers' Meeting in Gurugram where officials discussed bilateral engagement. The talks were framed as part of efforts to strengthen energy ties and address security concerns. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri met his Iranian counterpart Mohsen Paknejad and conveyed that India remained committed to enhancing energy security through dialogue. The Iranian Oil Ministry said Paknejad emphasised the need to strengthen cooperation with New Delhi. Ministers reviewed opportunities in oil and gas and explored mechanisms for collaboration. The renewed engagement followed a US decision to issue a 60-day temporary general licence permitting production, sale, transportation and import of Iranian crude, petroleum products and petrochemicals until August 21, according to a Wall Street Journal report. The waiver was said to allow associated banking, insurance and shipping services and to permit payments in US dollars. Officials said the reprieve created a window for diplomatic and commercial engagement. India had been among the largest importers of Iranian crude before sanctions forced refiners to halt purchases in 2019, and at its peak Iranian crude accounted for more than 11 per cent of India's oil imports. Indian refiners resumed limited purchases in April, taking 500,000 tonnes (t) of crude after a gap of nearly seven years following a 30-day waiver that lapsed on April 19. India meets nearly 88 per cent of its crude requirement through imports and has secured supplies through August 2026. The discussions with Tehran took place as energy security assumed greater priority amid geopolitical tensions, supply chain disruptions and volatility in global oil markets. Paknejad also held talks with the Union Minister of Power and Housing and Urban Affairs, signalling a broader agenda of bilateral engagement. The BRICS Energy Ministers' Meeting, held under India's BRICS chairship in 2026 with the theme Energy for All, concluded on Friday.

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