Iranian Oil Offered to India at Premium to Brent Amid Severe Supply Shortage

Oil traders have begun offering Iranian crude to Indian refiners at premiums over the ICE Brent benchmark, reflecting a severe shortage in physical supply. This shift follows Washington's temporary waiver on sanctions for Iranian shipments already at sea to mitigate the energy crisis caused by the Strait of Hormuz closure. However, China's Sinopec has taken a different stance, explicitly refraining from purchasing Iranian oil covered by these U.S. waivers. Sinopec's president confirmed the decision stems from a rigorous assessment of the commercial and legal risks involved in such transactions. This divergence highlights a split among major Asian buyers, where Indian refiners are paying premiums for immediate supply while China's largest refiner remains cautious. The situation underscores the extreme volatility and complex risk environment currently defining the global oil market.