Iran will allow Indian-flagged tankers to transit the Strait of Hormuz, a conduit for 40pc of the South Asian nation’s crude imports, an Indian government source has told Reuters, but an Iranian source outside the country denied any such deal was reached.

India, the world’s No. 3 oil consumer, said the foreign ministers of the two countries have had three conversations in recent days and the latest one this week focused on “issues pertaining to the safety of shipping and India’s energy security”.

“Beyond that, it would be premature for me to say anything,” foreign ministry spokesperson Randhir Jaiswal told a weekly media briefing.

Earlier today, the Suezmax tanker Shenlong, carrying Saudi crude, arrived at a port in Mumbai after transiting the strait, becoming the first crude carrier to reach India from the Middle East since February 28, according to LSEG data.

The customer is state-run Bharat Petroleum Corp , said a source with direct knowledge of the matter.