Iranian Foreign Minister Mohammad Javad Zarif traveled to New Delhi recently to revive ties with India and unravel issues that have constrained Indo-Iranian relationships. Zarif noted on Feb. 28, "The two countries are intent on minimizing wrongdoings and overcoming interferences." His two-day visit covered various regional and international issues, including developments in Afghanistan, combating extremism and, above all, increasing economic ties and crude oil exports to India.

Following the Geneva interim deal on Nov. 24, 2013, and the partial ease of sanctions against Iran, India’s oil secretary, Vivek Rae, announced that India is ready to pay $1.5 billion to Iran for its oil imports. According to Iranian officials, India owes Tehran nearly $5.3 billion for its oil imports. Under the Geneva agreement, the P5+1 agreed to provide Iran some sanctions relief, including access to $4.2 billion of its frozen oil revenue. The funds are going to be paid in eight transfers, beginning with an already transferred $550 million installment by Japan on Feb. 1, 2014.

Indian and Iranian officials have regularly emphasized shared historical and cultural ties. However, over the past few decades, energy seems to be the major common ground and shared interest. The question now is: Could India’s hunger for energy, coupled with Iran’s massive resources, become enough to resolve their current complex political and economic relations? To answer this question, one needs to examine the context of US-India energy ties and the role of India’s broader energy security needs.

Iran’s energy supplies to India