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COVER STORY JULY 03, 2026 | The Indian Eye 4

IRAN PEACE DEAL

INDIA EYES

OPPORTUNITY

An emerging US-Iran understanding could reopen energy,

trade and strategic opportunities for New Delhi

OUR BUREAU
New Delhi / Tehran / Washington, DC
s signs of a diplomatic thaw
emerge between the United
AStates and Iran, India is quietly
positioning itself to revive one of its
most important strategic partnerships
in West Asia. The visit of Iranian Pe-
troleum Minister Mohsen Paknejad
to New Delhi this week, his meetings
with senior Indian ministers and Iran’s
renewed call for expanded economic
cooperation have fuelled expectations
that New Delhi could soon regain ac-
cess to a major source of affordable Indian delegation led by NSA Ajit Doval interacts with the Iranian team led by Deputy Secretary for Defence Affairs of the SNSC of Iran, Ghadir
energy while broadening trade and
connectivity across the region. Nezamipour on the sidelines of the 16th BRICS NSAs Meeting, in New Delhi (@MEAIndia X/ANI Photo)
While the proposed US-Iran
peace framework remains under ne- ter Hardeep Singh Puri on Thursday, ment has been made regarding the re- Second, Iran historically extended
gotiation, Indian policymakers and with both leaders discussing ways to sumption of Indian crude imports, the generous credit terms to Indian refin-
industry are already assessing the enhance cooperation in the hydro- timing of the visit is notable. It follows ers, allowing purchases on deferred
opportunities that could emerge if carbon sector. Paknejad’s visit comes reports of progress in negotiations be- payment schedules. Third, Iranian
sanctions are eased. For India—the as India hosts the 11th BRICS Ener- tween Washington and Tehran aimed crude is technically well suited for sev-
world’s third-largest oil importer— gy Ministers’ Meeting under its 2026 at reducing tensions and establishing eral Indian refineries, reducing adjust-
the stakes are significant. Before US chairmanship. Speaking after arriving a roadmap toward a broader agree- ment costs. If sanctions are eventually
sanctions sharply curtailed purchases in New Delhi, Paknejad underscored ment. relaxed, Indian refiners such as Indian
in 2019, Iran ranked among India’s the historical relationship between the For India, even the possibility of Oil Corporation, Mangalore Refin-
largest crude suppliers, offering not two countries. “As you know, we have Iranian oil returning to global markets ery and Petrochemicals Ltd (MRPL),
only competitive prices but also fa- had historical relations between Iran offers strategic flexibility. Bharat Petroleum and Hindustan
vourable payment terms and lower and India for a long time, for centu- Affordable oil could help the Petroleum could once again diversify
freight costs. ries,” he said. “We are now ready for economy their sourcing.
The prospect of Iran returning all the relations we can have in eco- Greater competition among sup-
fully to international energy markets nomic fields with India, especially in ndia imports nearly 85 per cent of pliers would also strengthen India’s
comes at a time when India is pursu- India.” its crude oil requirements, making bargaining position with other oil ex-
ing greater energy security, diversified The Iranian minister also indi- Iinternational energy prices one of porters including Saudi Arabia, Iraq
supply chains and stronger economic cated that Tehran is operating under the biggest determinants of inflation, and the United Arab Emirates. Lower
partnerships through platforms such a temporary sanctions waiver. “About fiscal stability and economic growth. import costs would ease pressure on
as BRICS. the sanctions, as you know, we have a Iranian crude has traditionally been India’s current account deficit while
Energy security gets a boost kind of waiver for 60 days and we are attractive because of several advan- helping moderate domestic fuel prices.
going on based on some issues that we tages. First, the geographical proxim- Cheaper energy would also ben-
ranian Petroleum Minister have had agreed with Americans in ity reduces shipping costs compared efit manufacturing, transportation,
Mohsen Paknejad met Union Pe- this regard,” Paknejad said. with suppliers in Latin America or aviation, fertiliser production and
Itroleum and Natural Gas Minis- Although no formal announce- North America. Continued on next page... >>

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