US grants 30-day waiver to India to continue buying Russian oil amid Middle East tensions

The United States on Friday announced a 30-day “temporary” waiver allowing Indian refineries to continue purchasing Russian energy, as concerns grow over rising fuel prices due to the escalating conflict involving Iran, the US and Israel that has also affected other Gulf nations.

The announcement was made by Scott Bessent on X. He said the waiver would not significantly benefit Russia financially because it only permits transactions involving oil already stranded at sea.

According to a Bloomberg report, about 9.5 million barrels of Russian oil were sitting in Asian waters as of last week. The waiver applies only to Russian oil products loaded onto vessels before March 5 and will expire on April 4 at 12:01 a.m. Washington time.

Bessent said the temporary exemption for India was intended to ease pressure on global energy markets at a time when Iran is attempting to “take global energy hostage”.

“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil,” the treasury secretary wrote.

Concerns over global oil supply

The development comes amid fears of disruption to global energy supplies after Iran claimed it had closed the Strait of Hormuz.

Located between Iran and Oman, the strait links the Persian Gulf with the Gulf of Oman and the Arabian Sea. Roughly 20% of the world’s oil and gas supply passes through the route, making it one of the most strategically important energy corridors globally.

Amid concerns over potential price spikes, India has said it has sufficient reserves to handle short-term disruptions.
Hardeep Singh Puri told the Rajya Sabha earlier this week that India’s strategic petroleum reserves could meet demand for about 74 days in the event of global supply shocks.

Officials familiar with the matter also said the conflict in West Asia currently poses no immediate threat to India’s energy security.

Uncertainty over India’s Russian oil imports

Washington’s announcement comes weeks after the US said India had committed to halting purchases of Russian crude — a claim that has not been publicly confirmed by New Delhi.

Last month, Russia dismissed speculation that India might reduce imports of its oil.

Maria Zakharova said India’s purchase of Russian hydrocarbons benefits both countries and contributes to stability in the global energy market.

The US comments on India-Russia energy ties came as Washington also reduced tariffs on imports from India to 18%.