Middlemen are offering Iranian crude to Indian refiners at significant discounts, making the supply cheaper than regional alternatives.
The surge in offers follows the implementation of a temporary US sanctions waiver, which has opened a narrow window for legal trade flows.
Sources indicate that intermediaries are moving quickly to offload inventory before the waiver expires or market conditions shift.
The influx of discounted Iranian crude is likely to exert downward pressure on regional benchmark prices, particularly for grades similar to those exported from Iran.
Indian refineries, which have historically been major consumers of Iranian oil, are positioned to benefit from the lower input costs.
This development could narrow the price differential between Iranian crude and other Middle Eastern benchmarks, altering the competitive landscape for regional suppliers.