The United States has granted Indian refiners a 30-day waiver allowing them to purchase Russian oil currently stranded at sea, as disruptions linked to the West Asia conflict raise concerns about global supply.
U.S. Treasury Secretary Scott Bessent said on Thursday the measure was intended as a temporary step to keep oil flowing to global markets amid supply disruptions caused by the conflict.
The waiver would not deliver meaningful financial gains to Moscow because it only allows the sale of cargoes that are already at sea, Bessent said.
“This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” Bessent wrote on social media, adding that the United States expected India to increase purchases of U.S. crude.
India, which imports roughly 80%–85% of its energy needs, has emerged as a major buyer of Russian oil since Western sanctions were imposed on Moscow following the Russian invasion of Ukraine.
Indian opposition lawmaker Karti Chidambaram criticised the move, saying the “operative word is ‘allow’” and calling it a “disgrace to our sovereignty”.
Oil prices have surged amid escalating tensions in the region. Benchmark Brent crude climbed to about $84 per barrel on Friday, up about 15.9% from $72.87 on Feb. 27.
The rise followed a joint operation by Israel and the United States on Feb. 28 targeting Iranian capabilities, amid long-running tensions over Iran’s nuclear programme. Tehran says its programme is for civilian purposes, while Israel has warned that Iran is close to developing a nuclear weapon.
Iran retaliated with strikes on Israeli and U.S. military bases in the region and attacks targeting shipping and cities in Gulf states.
Earlier this week, Iran said the Strait of Hormuz — a key shipping route linking the Gulf to the Arabian Sea — was closed to maritime traffic and warned vessels attempting to pass through could be attacked. Roughly 20% of global petroleum liquids consumption passes through the waterway.
U.S. President Donald Trump said on Tuesday he had directed the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf. The U.S. Navy would also escort oil tankers through the strait, he said.
Separately, on Feb. 7 Trump issued an executive order removing an additional 25% tariff on imports from India linked to New Delhi’s purchases of Russian oil, reducing the effective U.S. tariff rate on Indian imports to 18% following an interim trade agreement.
Washington has previously argued that India’s purchases of Russian crude help finance Moscow’s war effort in Ukraine, while New Delhi has said the imports are necessary to safeguard its energy security.