Tezzbuzz Desk – Amidst the increasing tension between Iran, Israel and America and the Hormuz crisis, a relief news has emerged for India. After a long time, a banned ship carrying Iranian crude oil, which is considered important from the energy market, is heading towards India.
Return of Iranian oil after 7 years
According to ship-tracking data, the Aframax tanker named ‘Ping Shun’ is heading towards Vadinar Port on the west coast of India. This ship is loaded with about 5 lakh barrels (about 9.5 lakh tons) of Iranian crude oil.
If this delivery is successful, it will be India’s first purchase of crude oil from Iran since May 2019. At that time, India had stopped importing Iranian oil due to American sanctions.
The load was from Kharg Island
According to reports, this tanker had loaded crude oil from Kharg Island in early March. However, the final destination of the ship was not clear at first and could be changed midway.
Relief amid Hormuz crisis
This development has come at a time when global oil supplies are being affected due to tensions in the Strait of Hormuz. Due to the ongoing conflict in the Middle East, oil prices are witnessing a surge, which has increased the pressure on import-dependent countries like India.
America’s temporary exemption
Last month, the US gave a temporary exemption on pre-loaded Iranian crude oil, which provided some relief to the market. However, Indian government buyers have so far stayed away from such deals as issues related to payment, insurance and shipping still remain a major challenge.
Challenges still remain
According to experts, despite the temporary exemption, many banks are avoiding getting involved in transactions related to Iranian oil because of the risk of dealing with sanctioned entities.
In the case of another ship ‘Sea Bird’ which recently arrived at Mangalore Port, problems related to payment and delivery were also revealed, which clearly shows that the path is not completely easy right now.
If this deal is successful, it can not only open up cheap energy options for India, but will also be considered a big signal in the global oil market.
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