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Impact of US-Iran Peace Deal on India's Energy and Trade

Friday, June 19, 2026
5 min read
Impact of US-Iran Peace Deal on India's Energy and Trade

The US-Iran peace deal... it looks like it could actually be a net positive for India. Think about it: renewed access to Iranian oil, easing those gnawing worries about shipping through the Strait of Hormuz. And New Delhi’s big connectivity ambitions focused on Chabahar port all suddenly sitting on the table.

It’s a lot happening at once. Under this 14-point Memorandum of Understanding, Washington aGreed to some waivers. They let there be exports of Iranian crude oil, petroleum products, and all that associated stuff banking, insurance, transport too.

For India, it hits three areas immediately: energy security, maritime trade, regional links. It’s one of the biggest external winners from this whole mess, maybe.

Before all this, remember where things stood. When US sanctions forced Indian refiners to stop buying Iranian oil in 2019, Iran was still a major supplier for India. About ten percent of those crude imports came from there.

India basically stopped that buying in May of 2019 after the Trump administration ended those waivers granted to eight countries, including India. Suddenly, Indian refiners had to look elsewhere Saudi Arabia, Iraq, the UAE, the US stepped in.

Now, this new aGreement means Iran could start exporting oil again. And Tehran has a huge incentive for that. Since nearly sixty percent of their revenue comes from energy sales, they really want those crude exports flowing.

Getting access back to Iranian crude would give India more wiggle room. It helps diversify what they import. Energy security gets stronger, hopefully.

Iran’s Ambassador to India, Mohammad Fathali, pointed out something earlier. Before the sanctions hit, Iran was sometimes among India's top three suppliers of crude oil. The trade volume between them? Exceeded seventeen billion dollars every year.

The de-escalation itself Washington and Tehran moving toward some kind of normalisation that’s what should ease those worries about energy supplies getting squeezed.

But there are other things tied up here, too. Even with all the changes, India still has big dependency issues. Nearly ninety percent of their LPG imports still have to pass through that strategic waterway. That conflict really messed up supplies, didn't it? Prices shot up. Long queues started forming outside oil marketing company outlets across several states.

The Petroleum Ministry said India now buys crude from around forty different countries. Non-Hormuz sources make up nearly seventy percent of imports now. Up from fifty-five percent before. That diversification helped cushion the blow when things went bad, sure. But getting normal shipping through Hormuz? That’s where the real relief comes in.

And then there's Chabahar. This deal could actually revive India’s strategic investments there. It’s not just a port. It connects to Afghanistan, Central Asia, Russia. It’s a crucial piece of that massive seven-two hundred kilometer International North-South Transport Corridor.

India’s stake in the port got complicated back when the US administration pulled the sanctions waiver for Chabahar in October 2025. They gave a six-month wind-down period, which ended April twenty-sixth, 2026. That was a pressure point for New Delhi.

Last week, the External Affairs Ministry spokesperson, Randhir Jaiswal, said India is still talking to the US about this. Reports suggest they are exploring ways to keep their presence at the port, even after that waiver expired.

If Washington and Tehran settle things down, those restrictions on Chabahar could loosen up. That might finally let India re-engage with one of its most important overseas infrastructure projects. It’s a big piece of geography, really.

Written by Gree News Team — Senior Editorial Board

Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.

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