Mid-Sea Mystery: Iranian Oil Tanker Appears Near India, Refiners Keep Distance

Amid escalating tensions in West Asia, an Iranian oil tanker carrying nearly 2 million barrels of crude reached waters off Gujarat without declaring a destination or buyer, triggering fresh concerns over sanctions compliance.

The very large crude carrier (VLCC) Derya arrived near the Gujarat coast on Tuesday, according to vessel-tracking data from Kpler and MarineTraffic. Industry sources say Indian refiners will likely avoid purchasing the cargo due to US sanctions risks.

Refiners Weigh Sanctions Risk

The tanker reportedly loaded Iranian crude on March 28. However, the United States Department of the Treasury allowed transactions only for Iranian oil loaded before March 20 under its temporary sanctions waiver.

Because Derya loaded its cargo after the cut-off date, any buyer could face secondary US sanctions. Refiners in India are therefore expected to stay away from the shipment.

The United States Navy has also begun enforcing a blockade of Iranian ports after diplomatic talks between Washington and Tehran collapsed. US authorities have indicated they will not extend the waiver, further tightening pressure on Iranian oil exports.

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Sanctioned Vessel Faces Limited Options

Shipping databases list Derya as a sanctioned vessel operated by Iran’s National Iranian Tanker Company (NITC). These restrictions significantly narrow its pool of potential buyers, with China emerging as one of the few possible destinations.

The tanker likely crossed the Strait of Hormuz before the blockade intensified. As of Wednesday afternoon, tracking data showed the vessel hovering near Gujarat with little movement.

India’s Recent Iranian Imports

On March 21, US authorities temporarily eased sanctions to allow the sale of Iranian crude that had already been loaded onto tankers before March 20. The move aimed to stabilise global oil markets and ease supply concerns.

Following the waiver, Indian refiners accepted a few Iranian cargoes, marking the first such imports in nearly seven years. India had stopped buying Iranian crude in May 2019 after Washington reinstated sanctions.

India sources crude from more than 40 countries and imports over 88% of its oil requirements. Nearly half of its crude shipments pass through the Strait of Hormuz, making regional tensions a key risk factor for energy security.

Strategic Signal for Oil Markets

The arrival of Derya underscores the fragile state of global oil trade amid geopolitical uncertainty. By refusing to extend the waiver and tightening maritime enforcement, the US has increased compliance risks for refiners worldwide.

For now, Derya remains stationed near India’s western coast as buyers weigh legal exposure against energy needs in a rapidly shifting sanctions landscape.

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