The United States has issued a temporary 30-day waiver allowing India to purchase Russian oil currently stuck at sea, in a bid to maintain global supplies and prevent further price increases during the Middle East crisis.
Treasury Secretary Scott Bessent announced the move as a 'stopgap measure' to counter Iran's attempts to take global energy hostage. The waiver comes after the US previously imposed heavy sanctions on Russian oil imports and additional tariffs on India for buying Russian crude.
Bessent stressed that the waiver only applies to oil stranded at sea, limiting financial benefit to Russia. Separately, Kremlin spokesperson Dmitry Peskov noted that the Iran conflict has boosted demand for Russian energy products, while Chinese imports of Russian crude hit record levels.
Iran's effective blockade of the Strait of Hormuz following US and Israeli strikes has sparked global supply fears. Qatar's energy minister warned that escalating conflict could drive oil to $150 a barrel, and Kuwait has begun cutting production, pushing prices above $90.
Indian refiners are buying millions of barrels of Russian crude to navigate the supply crunch. Deutsche Bank analysts view the waiver as short-term relief for Asian refiners. However, Global Witness accused the White House of fuelling Putin's war machine, saying the measure sacrifices Ukraine to combat an oil price crisis triggered by the US and Israel.
India relies on crude stocks covering only about 25 days of demand and receives roughly 40% of its oil imports via the Strait of Hormuz. State refiners are in talks for prompt Russian cargoes. Meanwhile, IEA Executive Director Fatih Birol cautioned against returning to Russian gas, calling Europe's past over-reliance a historical mistake.
