U.S. sanctions temporarily "loosened," India resumes energy trade with Iran, first liquefied petroleum gas ship set to arrive soon

``` According to Xinhua News Agency, the Iranian Foreign Ministry issued a statement on March 22 declaring that the Strait of Hormuz has not been closed. Ships belonging to the United States, Israel, and other countries involved in aggression will be denied passage, but vessels from other non-hostile countries may safely pass through after coordinating with the relevant Iranian authorities and complying with safety regulations. Reuters reports that the phased easing of U.S. sanctions against Iran is prompting India to restart energy imports from Iran for the first time in years. According to three industry sources and LSEG trade flow data, a tanker carrying Iranian liquefied petroleum gas (LPG) is expected to arrive at the Indian west coast port of Mangalore, marking one of India’s first purchases from Iran since it halted energy imports in 2019 under Western sanctions pressure. This move signals a substantial resumption of energy trade between the two countries. At the same time, the United States has temporarily relaxed sanctions on Russian crude oil, prompting Indian refiners to increase purchases. Indian crude oil imports from Russia surged to 60 million barrels in April, the highest in recent months, boosting Russian crude oil export revenues to near the highest levels since 2022. Resanctioned tanker diverted to India According to LSEG data and sources, the tanker carrying this Iranian LPG shipment is named "Aurora." The vessel is sanctioned and originally headed for China, but was diverted to India. It is expected to arrive at Mangalore port soon. The shipment was purchased by the Indian side through a trader. Notably, Rajesh Kumar Sinha, Special Secretary at India's Federal Ministry of Shipping, stated in a press conference on Wednesday: "There are no loaded cargoes from Iran, we have not heard of such a situation," suggesting that the government has not officially confirmed this incident at an official level. Deep in gas shortage, urgent procurement needs The resumption of Iranian imports highlights the severe energy supply pressure faced by India. India is the world’s second-largest LPG importer, consuming 33.15 million metric tons last year, with about 60% relying on imports, and about 90% of those imports coming from the Middle East. U.S. and Israeli military actions against Iran have disrupted shipping in the Strait of Hormuz, delivering a severe blow to India, which is highly dependent on Middle Eastern energy. India is currently facing its worst gas crisis in decades, with the government having cut industrial gas supplies to prioritize household cooking gas. Currently, India is gradually transferring LPG tankers stranded in the Strait of Hormuz, with four vessels—"Shivalik," "Nanda Devi," "Pine Gas," and "Jag Vasant"—having been redirected. It is also loading LPG into empty ships stranded in the Persian Gulf. Sanctions easing opens a window This procurement was made possible directly by the U.S. temporarily lifting some sanctions on Iranian crude oil and oil products, providing a brief operational opportunity for buyers like India. India previously maintained significant cooperation with Iran in oil imports, but after fully withdrawing due to Western sanctions in 2019, bilateral energy trade stalled. As India actively explores further purchases, observers will closely watch whether the window of eased sanctions remains open and if India can normalize Iranian energy imports without incurring the risk of secondary sanctions, to alleviate the ongoing tight LPG supply at home. Risk Warning and Disclaimer The market carries risks, and investors must act cautiously. This article does not constitute personal investment advice, nor does it take into account the unique investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their specific circumstances. Investing accordingly is at your own risk. ```