Indian state-run refiners, normally aggressive buyers of discounted crude supplies, are proceeding cautiously with Trump-approved Iranian petroleum, citing insurmountable barriers in payment settlement, vessel insurance, and shipping logistics.
The hesitation reflects structural obstacles beyond sanctions: major insurers remain reluctant to cover Iran-bound shipments, while banking channels for transactions remain restricted despite the 30-day sanctions pause. Traders report that refiners including Indian Oil, Hindustan Petroleum, and Bharat Petroleum are holding bid expectations as practical complications override price advantages.
TankerMap tracks vessel flow patterns through Asian ports. The reluctance to aggressively buy Iranian crude—even with official US approval—signals deep entrenchment of alternative risk assessments. Refiners may prefer stable (if pricey) West African or Australian cargoes over cheap but operationally complicated Iranian barrels. This dynamic could prolong the substitution shift toward non-Gulf suppliers.