US Gives India 30-Day Waiver to Buy Russian Oil as Iran War Disrupts Global Supply

India received a temporary boost in its energy security on Friday as the United States granted a 30-day waiver allowing Indian refiners to purchase Russian crude oil. US Treasury Secretary Scott Bessent announced the move, noting that the waiver applies to vessels carrying Russian oil as of March 5, 2026. The licence, issued by the Treasury Department’s Office of Foreign Assets Control, authorises transactions through April 3, 2026, including shipments that were previously blocked under various sanctions regimes, providing India with much-needed flexibility amid global supply disruptions.

The waiver comes amid escalating tensions in the Middle East, including Iran’s blockade of the strategically vital Strait of Hormuz, which handles about 20% of global oil shipments. Recent strikes on major oilfields, including Saudi Aramco’s Ras Tanura refinery and Iraq’s Rumaila oilfield, have further disrupted oil production, leading to a spike in global crude prices. Brent crude touched $83.07 per barrel on Friday, intensifying concerns over energy availability for countries heavily dependent on imports, like India.

Secretary Bessent described India as an “essential partner” of the United States and emphasized that the waiver is a short-term measure designed to stabilise global energy flows without providing significant financial benefit to Russia. In a post on X, he clarified that the move allows transactions only for oil already stranded at sea and underlines the US commitment to maintaining global supply despite sanctions imposed on Russian oil majors, including Lukoil and Rosneft.

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The temporary waiver is expected to ease pressure on India’s refining sector, which saw Russian oil imports fall to around 1.1 million barrels per day in January, the lowest since November 2022. Moscow’s share of India’s total oil imports dropped to 21.2% amid compliance with US sanctions, though it rebounded to nearly 30% in February. Analysts said the measure will help India manage costs and supply during a period of heightened volatility without immediately impacting domestic fuel prices.

The move also highlights the strategic importance of India-US energy ties, with Bessent noting that New Delhi is expected to increase purchases of US oil in the near term. He described the waiver as a “stop-gap measure” aimed at countering Iran’s attempt to disrupt global energy flows while allowing India to meet domestic demand efficiently. The measure comes at a critical time when geopolitical tensions have combined with infrastructure strikes to strain energy markets globally.

India’s decision to leverage the waiver, coupled with careful management of domestic fuel pricing, reflects its efforts to navigate a volatile global energy landscape while maintaining economic stability. As the Middle East remains a flashpoint for regional conflicts, temporary measures like the US waiver are expected to provide India with short-term relief, ensuring uninterrupted refinery operations and strategic continuity in oil supplies.

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