Reliance Rejects Iran Oil Cargoes Before Waiver Expires

Reliance Industries has rejected two Iranian oil cargoes as a U.S. sanctions waiver covering Iranian crude exports approaches expiration without renewal. Washington's decision not to extend the waivers forces major importers to exit Iranian supply chains or face secondary sanctions exposure. India had previously permitted Reliance to purchase Iranian oil transported on sanctioned tankers, an arrangement now unwinding under the tightening U.S. posture. Reliance cited compliance failures on the Derya tanker cargo specifically, signaling the company is prioritizing regulatory standing over supply economics. The contrast with Indian Oil Corp, which recently purchased Iranian crude, suggests Indian state refiners and private operators are not moving in lockstep. Reliance's early exit reduces its sanctions risk but tightens its near-term crude sourcing options, likely pushing procurement toward Middle Eastern or U.S. alternatives. The expiring waiver deadline is the pressure point to watch: once it lapses, any continued Iranian purchases by Indian buyers would escalate exposure to U.S. financial system restrictions.