US President Donald Trump on Saturday claimed that India will buy oil from Venezuela instead of Iran, even though India currently does not import significant amounts of Iranian crude due to US sanctions. Before the sanctions were imposed, Iran was one of India’s major oil suppliers. However, restrictions put in place by Washington drastically reduced those purchases over the past few years.
Trump’s comment came a day after the United States told Delhi that it could soon resume buying Venezuelan oil to help replace imports from Russia, according to three people familiar with the matter, Reuters reported. Trump’s willingness to supply Venezuelan crude to India is part of Washington’s effort to cut the Russian oil purchase. On Saturday, Trump also said China could strike a deal with the US to buy Venezuelan oil.
Trump claims India will buy Venezuelan oil
“We’ve already made a deal. India is coming in, and they’re going to be buying Venezuelan oil as opposed to buying it from Iran. So, we’ve already made the concept of the deal…,” Trump told reporters while on Air Force One, travelling Florida from Washington, DC. The POTUS didn’t offer further details on when or how such an arrangement would take shape. Trump added China was also welcome to make a deal with the US to buy Venezuelan oil.
Iran depends heavily on its oil exports. According to the US Energy Information Administration, Iran holds some of the world’s largest proven oil and natural gas reserves. In 2023, it ranked third globally in oil reserves and second in natural gas. That year, Iran was also the fourth-largest oil producer within OPEC, the Organisation of the Petroleum Exporting Countries.
Earlier, India used to import a lot of oil from Iran. Between 2006–07 and 2018–19, Iran was one of India’s top suppliers. At its peak in 2007–08, Iran provided 13 per cent of India’s crude oil imports. In 2018–19, India imported $12.3 billion worth of Iranian oil, nearly 9 per cent of its total oil imports.
However, after the US reimposed sanctions after withdrawing from Iran’s nuclear deal, India had to reduce its imports. Imports fell to $987 million in 2019–20, then dropped further to $12.5 million in 2020–21. By 2024–25, India imported just $70.1 million, which is only 0.04 per cent of its total oil needs.
As imports from Iran fell, India increased its oil purchases from Russia. Russia’s share in India’s imports rose from 0.3 per cent in 2006–07 to almost 30 per cent in 2024–25. During the same period, China became Iran’s top oil buyer.
US oil imports from Venezuela hit a one-year high
The United States is on track to import its highest amount of Venezuelan oil in a year, after President Donald Trump’s administration took control of the South American country’s energy supply, earlier this year. According to shipping data and vessel movements tracked by Bloomberg, 18 ships carrying Venezuelan crude are heading to refineries in Texas, Louisiana and Mississippi this month. According to Bloomberg data released on January 30, this is the highest number of shipments since December 2024.
Once all deliveries arrive, US imports of Venezuelan crude are expected to reach around 275,000 barrels a day. That is more than double the volume seen just a month earlier. As the US becomes the biggest buyer of Venezuelan oil following the capture of former President Nicolás Maduro, shipments to China have completely stopped. In contrast, China’s imports dropped by 220,000 barrels per day to zero, according to Bloomberg.
Rahul Gandhi reacts to Trump’s claims
While the Indian government hasn’t made any official comment on Trump’s claim that India will buy oil from Venezuela instead of Iran, opposition leader Rahul Gandhi criticized the Modi government, saying it has “pawned its foreign policy in the White House.” On X, he wrote, “Trump has announced, India will now buy oil from Venezuela instead of Iran. Once again, Trump is deciding what India will do, where it will buy oil from and where it won’t. What secret does Trump have on Modi that he’s holding over him, which Modi fears will come out? Now, the country is paying the price for Modi’s fear.”