Russia’s crude exports hit a 2026 high of 3.89 million bpd — just as the U.S.-Iran deal threatens its grip on India

Average Russian seaborne crude exports since the start of 2026 are running at about 3.46 million bpd, roughly 120,000 bpd higher than the 2025 annual average and above the previous post-invasion high of 3.36 million bpd set in 2023 .

India's record Russian imports — 2.35 million bpd, 53.5% share

Kpler, a commodity analytics firm, estimates that India imported 2.35 million barrels per day of Russian crude in June 2026, surpassing the previous record of 2.2 million bpd set in May 2023 . That volume represents approximately 53.5% of India's total crude oil imports for the month . Daily averages in June were running as high as 2.6–2.73 million bpd through June 20 .

This record was a direct consequence of the Strait of Hormuz crisis, which choked off supply from Iraq, Saudi Arabia, and the UAE, while Russia kept its delivery routes open and offered discounted cargoes . India imports about 90% of its crude needs, making it acutely sensitive to supply disruptions .

How the U.S.-Iran deal threatens Russia's position

On June 17, 2026, the U.S. and Iran signed an initial agreement that includes three major provisions :

1. Reopening of the Strait of Hormuz — U.S. Central Command lifted the blockade on Iranian ports on June 18 .
2. Waiver of U.S. oil sanctions on Iran — the Treasury issued a sweeping 60-day exemption, General License X, allowing dollar-based transactions for Iranian oil for the first time in over 40 years .
3. Iran's commitment to reduce its highly enriched uranium stockpile .

The competitive threat to Russia is clear:

• Iranian crude is a direct substitute for Russian barrels in Indian refineries, with similar medium-sour grades. Iran's return could immediately add 1–2 million bpd of supply, much of it likely headed to the same Indian customers Russia has been serving .
• Price competition will intensify. Russian crude has been selling at a discount of $2–5/bbl, but Iranian oil — freed from sanctions and backed by the Hormuz reopening — could land in India at even steeper discounts, compressing Russia's margins .
• India will diversify back. The record 53.5% Russian share was a crisis-driven anomaly. Indian refiners have historically preferred Middle Eastern crude, and once Saudi, Iraqi, and Iranian supply lines are fully restored, they are likely to rebalance their intake away from extreme dependence on any single supplier .

S&P Global notes that while the deal eases long-term supply fears, full normalization of Iranian oil flows will take time — likely extending through summer 2027 . But the direction of travel is unmistakably negative for Russia's dominant position in the Indian market. Bloomberg sums it up: Russia is now facing "stiffer competition selling barrels to key customer India after a US sanctions waiver freed up cargoes from rival supplier Iran" .