India, one of Iran’s key trading partners and the country tasked with developing a strategic Chabahar port for the Islamic Republic, has seized three tankers carrying smuggled Iranian oil in waters near its coast. Despite the Indian Coast Guard’s announcement of the seizures, the Iranian government has so far remained silent—underscoring the risks Tehran faces from escalating tensions with New Delhi.
In previous cases, when countries such as the United Kingdom, United States, or Greece seized Iranian tankers, Tehran not only issued sweeping threats but also retaliated. In contrast, Iran has adopted a policy of silence toward India.
India, one of Iran’s key trading partners ..., has seized three tankers carrying smuggled Iranian oil in waters near its coast.
The U.S. Treasury Department added the three tankers—Al Jafzia, Asphalt Star, and Stellar Ruby—to its sanctions blacklist last year as Washington sought to intensify pressure on Iran’s oil-shipping logistics. As a result, Iranian crude offloaded at Chinese ports fell to 800,000 barrels per day last month, half the level seen at the start of last year, and Iran’s floating oil storage surged nearly threefold to 190 million barrels. According to Kpler data, in 2025, Iran loaded 251 vessels with sanctioned Iranian oil, 217 of them sanctioned for previously transporting illicit oil.
According to the shipping intelligence firm TankerTrackers, Iran’s use of Indian waters to evade sanctions usually involves small volumes that do not attract scrutiny. However, the timing of the recent seizures is notable, the firm said: “It might be common but it’s small-volume traffic, which we normally don’t keep an eye on, especially in India. That said, the timing and circumstances of these arrests are interesting given that [President Donald] Trump said he’d slap 25 percent tariffs on any country that imports Iranian oil, and then next we see a set of ship-to-ship transfers on automatic identification systems in the Indian Exclusive Economic Zone involving an Iranian-flagged tanker.”
On February 7, 2026, immediately after talks between U.S. and Iranian officials concluded in Oman, Trump announced an executive order imposing 25 percent tariffs on imports from countries trading with Iran.
Although India halted Iranian oil imports in 2019, figures from Iran’s Chamber of Commerce indicate annual bilateral trade of $3 billion, with 70 percent attributed to Iranian exports to India. Indian Ministry of Economy data, however, show the opposite: In the first eight months of last year, India exported $1.24 billion to Iran while importing just $721 million. This discrepancy suggests that Iran is using India’s financial system to bypass sanctions on non-oil trade as well. Neither Indian nor Iranian officials have explained why the two countries’ official trade statistics are not mirror images of each other.
The United States recently lifted additional 25 percent tariffs on India in exchange for New Delhi halting imports of Russian oil—signaling Washington and New Delhi’s determination to deepen economic ties and isolate countries under U.S. sanctions. Reports indicate that many Indian refineries have stopped purchasing Russian oil and that by the end of this month, India may place no further orders for Russian crude.
Another factor is the deployment of U.S. naval forces to the Persian Gulf and the rising risk of war with Iran.
Last year, India’s trade with the United States totaled about $140 billion, with a similar volume traded with the European Union. Including services, India’s total trade with the United States and European Union reaches roughly $400 billion—more than 133 times India-Iran trade and even larger than Iran’s entire gross domestic product.
Another factor is the deployment of U.S. naval forces to the Persian Gulf and the rising risk of war with Iran. Some Iranian officials have highlighted the possibility of disrupting shipping through the Strait of Hormuz, and Supreme Leader Ali Khamenei has warned that a U.S. attack would engulf the region in war.
In reality, such threats are directed less at the United States and European Union than at China and India: China purchases about 5 million barrels per day and India purchases 2.3 million barrels per day of oil that transits the Strait of Hormuz, while only 6 percent of the oil passing through the strait is destined for the United States or European Union.
By seizing the tankers, India has sent Tehran a clear message: Reckless threats by Iranian officials will carry consequences—prompting pushback against the Islamic Republic from multiple countries.
