India Considers Its Options to Navigate Oil Market Volatility due to Iran-US War
14:13 03.03.2026 (Updated: 17:08 03.03.2026)
© Sputnik / Vitaly Timkiv
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Russia continued to remain India’s top oil supplier, with imports accounting for around 1.16 million barrels per day, according to Kpler.
Russian oil has become a lucrative option for India due to the escalating US-Iran conflict, diplomatic sources suggested to Sputnik India.
While the shock in the oil markets in the wake of Iran-US conflict has caused a sense of concern in India, the Indian government is believed to be relying on its “diversification” strategy to navigate the situation.
A meeting to review the supply situation for crude oil, LPG and natural gas, chaired by India’s Petroleum and Natural Gas Minister Hardeep Singh Puri, was held in Delhi on Monday.
While the shock in the oil markets in the wake of Iran-US conflict has caused a sense of concern in India, the Indian government is believed to be relying on its “diversification” strategy to navigate the situation.
A meeting to review the supply situation for crude oil, LPG and natural gas, chaired by India’s Petroleum and Natural Gas Minister Hardeep Singh Puri, was held in Delhi on Monday.
“We are continuously monitoring the evolving situation, and all necessary steps will be taken in order to ensure availability and affordability of major petroleum products in the country,” said a statement by the ministry posted on X.
Government sources told Sputnik India that the Indian government has been importing crude oil from around 41 nations, so replacing the affected supplies from the Middle-East (mainly Saudi Arabia) with other sources remains an option.
While there is no official confirmation whether India would increase its intake of Russian crude in view of the prevailing situation, several oil analysts have said that Russian oil may well be the most lucrative option for Delhi to manage the upward pressure on prices.
While there is no official confirmation whether India would increase its intake of Russian crude in view of the prevailing situation, several oil analysts have said that Russian oil may well be the most lucrative option for Delhi to manage the upward pressure on prices.
Separately, diplomatic sources told Sputnik India that Russian crude would continue to find its way to the Asian markets despite US sanctions on Rosneft & Lukoil as well as its threats against India. They noted that China has been ramping up its purchases of Russian oil, as indicated by January figures reported by various agencies.
Diplomatic sources also suggested that tensions in the Middle-East have benefitted the prospects of Russian crude.
Reportedly, Saudi Aramco shut down its Ras Tanura refinery, one of the largest in the country, as a precautionary measure after a drone strike. On the other hand, Qatar, which controls 20% of the global LNG supply, has announced a production halt in view of Iranian strikes.
India scaled up its purchases of crude from the Middle East in January, as it accounted for 55% of the country’s overall supplies, according to ship-tracking data.
Significantly, broader implications for regional security and economic and commercial activities spurred by the US-Iran conflict also figured in the Indian Cabinet Committee on Security(CCS) Meeting chaired by Prime Minister Narendra Modi in Delhi on Sunday.
India scaled up its purchases of crude from the Middle East in January, as it accounted for 55% of the country’s overall supplies, according to ship-tracking data.
Significantly, broader implications for regional security and economic and commercial activities spurred by the US-Iran conflict also figured in the Indian Cabinet Committee on Security(CCS) Meeting chaired by Prime Minister Narendra Modi in Delhi on Sunday.
