US Grants India 30-Day Waiver for Russian Oil Amid Middle East Energy Tensions
The United States on Friday announced a 30-day “temporary” waiver allowing Indian refineries to continue purchasing Russian oil. The move comes amid fears of rising energy prices triggered by the ongoing conflict involving Iran, the US, and Israel, which has also affected other Gulf nations.
US Treasury Secretary Scott Bessent announced the waiver on X, emphasizing that the measure would not provide significant financial gains to Russia. “This only authorizes transactions involving oil already stranded at sea,” he wrote.
According to a Bloomberg report, about 9.5 million barrels of Russian oil were in Asian waters last week. The US waiver applies only to oil loaded onto vessels before March 5 and will expire on April 4 at 12:01 a.m. Washington time.
Bessent noted that the temporary waiver was intended to ease global energy pressures, stating that Iran was attempting to “take global energy hostage.” He added, “India is an essential partner of the United States, and we fully anticipate that New Delhi will increase purchases of US oil.”
India’s Oil Reserves Amid Global Tensions
Amid the escalating Middle East crisis, Iran recently claimed to have closed the Strait of Hormuz, raising concerns about fuel price spikes, inflation, and economic instability in countries dependent on Gulf crude.
The Strait of Hormuz, lying between Iran and Oman, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. It facilitates approximately 20% of the world’s oil and gas supply, making it a critical trade route.
In response to concerns over potential energy shortages, India shared an update on its strategic reserves. Union Minister Hardeep Singh Puri told the Rajya Sabha that India’s strategic petroleum reserve can meet demand for up to 74 days in the event of global supply disruptions. Officials have also stated that the West Asia conflict does not pose an immediate threat to India’s energy security.
US Waiver and India’s Russian Oil Purchases
The US’s announcement of a temporary waiver follows weeks after it claimed that India had agreed to halt Russian oil purchases—a claim not yet confirmed by Indian authorities.
Last month, Russia dismissed suggestions that India would reduce its imports of Russian crude, stating that such purchases benefit both countries and help maintain stability in the global energy market. Maria Zakharova, spokesperson for the Russian Foreign Ministry, said, “India’s purchase of Russian hydrocarbons benefits both countries and helps maintain stability in the international energy market.”
The US announcement coincides with a reduction of existing tariffs on Indian imports to 18%, signaling continued engagement between the two nations on trade and energy matters.
