India will look to resume buying crude oil from Iran the moment U.S. sanctions are eased, helping it diversify its import basket, a senior government official said.
India stopped importing oil from Iran in mid-2019 following sanctions on the Persian Gulf nation by the Trump administration.
The U.S. and other world powers are meeting in Vienna to revive the Iran nuclear deal.
"Once the sanctions are lifted, we can look to resume oil imports from Iran," the official, who did not wish to be identified, said.
Indian refiners have begun preparatory work and can swiftly enter into contracts once the sanctions are lifted, he said.
"We already have a template for commercial terms and we can very quickly enter into contracts the moment Iran is cleared for exporting oil," the official said.
Iranian oil coming into the market will not just cool prices but also help India diversify its import basket.
In 2020-21, Iraq was India's biggest oil supplier, followed by Saudi Arabia and the UAE. Nigeria was fourth-largest supplier and the U.S. was the fifth.