The United States has announced that it will not renew sanctions waivers that previously allowed the purchase of Russian and Iranian oil, a move that is expected to tighten global energy flows and increase pressure on countries that had benefited from the temporary relief measures. The decision marks a shift away from earlier exemptions that permitted limited oil transactions despite ongoing sanctions regimes. India was among the key beneficiaries of these waivers, which enabled refiners to secure additional crude supplies during periods of global market disruption.

US Treasury Secretary Scott Bessent confirmed the decision, stating that the general licences permitting transactions involving Russian and Iranian oil would not be extended. He noted that the exemptions applied only to oil already loaded onto vessels before specific cut-off dates and were intended as short-term stabilisation measures. According to him, the remaining authorised shipments have already been utilised, signalling the end of the temporary arrangement.

The waivers had been introduced to ease pressure on global oil markets amid disruptions linked to geopolitical tensions and instability in key maritime routes such as the Strait of Hormuz. At their peak, these exemptions allowed millions of barrels of crude to enter international markets, helping prevent sharper spikes in global energy prices. However, Washington has now decided to withdraw the relief as part of a broader policy shift.

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India had been one of the major beneficiaries of the Russian oil waiver, using the opportunity to diversify and secure discounted crude supplies amid volatile global conditions. Reports indicate that Indian refiners placed orders for approximately 30 million barrels of Russian oil during the waiver period. At the same time, earlier imports of Iranian crude had resumed briefly after years of sanctions-related suspension before facing renewed restrictions.

However, industry dynamics have remained fluid, with major Indian refiners including Reliance Industries adjusting their procurement strategies in response to shifting US pressure and sanctions enforcement. While some companies initially scaled back purchases from Russian suppliers such as Rosneft and Lukoil, they later resumed imports as global market conditions evolved. The end of the waiver is expected to once again reshape sourcing decisions for Indian refiners.

The move has drawn criticism and debate in the United States, with some lawmakers arguing that temporary relief measures indirectly benefited sanctioned countries. Critics have claimed the waivers undermined broader sanctions objectives, while supporters had previously defended them as necessary to stabilise global energy supplies. With the exemptions now ending, Washington has signalled a return to stricter enforcement and its “maximum pressure” approach on sanctioned oil exporters.

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