Indian Oil Corporation

Indian Oil Corporation (IOC) is India's largest state-owned oil refining and marketing company, accounting for roughly 40% of national petroleum product distribution. It operates the largest refining capacity of any Indian public-sector undertaking and has historically sourced significant volumes of Iranian crude when diplomatic conditions allowed.

IOC's exposure to Iran has been a recurring pressure point. The company imported Iranian crude under the waiver arrangements that preceded the 2018 JCPOA collapse, restarted purchases under General License U during the 2026 conflict, and now faces disruption as IRGC attacks on Indian-flagged tankers and OFAC designations of Indian shipping intermediaries simultaneously threaten its supply chain. India's state refiners account for the bulk of Indian crude imports from the Gulf; approximately 60% of India's total oil imports transit the Strait of Hormuz.

The OFAC designation of Indian-linked entities in the Shamkhani network signals that third-country buyers of Iranian crude, including state-controlled refiners, are within the scope of US enforcement action. IOC faces a structural bind: reducing Iranian exposure aligns with US pressure but increases energy costs at a time when Indian retail fuel prices are politically sensitive.