Delhi, Tehran Explore Energy Cooperation as US Sanctions Ease

India and Iran have agreed to explore fresh opportunities for cooperation in the oil and gas sector, as a temporary US sanctions waiver opens the door for Iranian crude to return to global markets and revive a long-dormant energy partnership between the two nations.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri met his Iranian counterpart, Minister of Petroleum Mohsen Paknejad, on the sidelines of the 11th BRICS Energy Ministers' Meeting being hosted by India in Gurugram. "We explored opportunities to cooperate in the energy sector. India remains committed to enhancing energy security through dialogue, partnership and mutually beneficial engagement," Puri said in a post on X.

Paknejad emphasised the importance of strengthening cooperation between Tehran and New Delhi in the energy sector, according to the Iranian Oil Ministry. The ministers reviewed opportunities for enhancing cooperation in oil and gas and explored avenues for expanding bilateral engagement.

The renewed engagement comes after the United States granted a 60-day sanctions reprieve as part of a 14-point memorandum of understanding signed between Washington and Tehran last week, according to a Wall Street Journal report. The US Treasury issued a temporary general licence on Monday, authorising the production, sale, transportation and import of Iranian crude oil, petroleum products and petrochemicals until August 21. The waiver also permits associated banking, insurance and shipping services and allows payments in US dollars.

"About the sanctions, as you know, we have a kind of waiver for 60 days, and we are going on based on some issues that we have had agreed with Americans in this regard about the sanctions," Paknejad said.

India was among the largest importers of Iranian crude before US sanctions forced Indian refiners to halt purchases from Iran in 2019. At its peak, Iranian crude accounted for more than 11% of India's total oil imports. Indian refiners resumed limited purchases in April, taking 500,000 tonnes of crude after a gap of nearly seven years, following a 30-day US sanctions waiver that lapsed on April 19.

India, which meets nearly 88% of its crude oil requirement through imports, has already secured most of its crude purchases through August 2026. The renewed engagement with Tehran comes at a time when energy security has assumed greater importance amid geopolitical tensions, supply chain disruptions and volatility in global oil markets.

Paknejad also held talks with Union Minister of Power and Housing and Urban Affairs Manohar Lal on the sidelines of the meeting. The two-day BRICS Energy Ministers' Meeting, being held under India's BRICS Chairship 2026 with the theme "Energy for All", concludes on Friday.