The US Treasury Department has issued a temporary 30-day waiver allowing Indian refiners to purchase Russian crude currently stranded at sea, a move aimed at easing pressure on global oil supplies amid the conflict involving Iran.
US Treasury Secretary Scott Bessent said the measure was intended to keep oil flowing into the global market as Middle East tensions disrupt shipping routes and crude supplies.
“This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea,” Bessent said in a statement.
He described the waiver as a “stopgap measure”, signalling that Washington expects India to eventually increase purchases of oil from the United States.
Indian refiners have been purchasing prompt cargoes of Russian crude as the Middle East crisis threatens supplies. The disruption is linked to tensions involving Iran and the strategic Strait of Hormuz, through which a large share of global oil shipments passes.
According to industry sources, Indian state-run refiners have already bought about 20 million barrels of Russian oil from traders.
Companies involved in the purchases include: Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals Limited.
These refiners are reportedly negotiating with traders for additional cargoes for prompt delivery.
The waiver represents a notable policy shift by the administration of Donald Trump, which had been urging New Delhi to reduce Russian oil purchases to limit funds flowing to Russia following its invasion of Ukraine.
India had earlier cut back imports of Russian crude in January amid pressure from Washington. The move helped New Delhi avoid potential 25 percent tariffs and facilitated an interim trade agreement with the US.
However, the ongoing Middle East conflict has raised fears of a supply crunch. India remains vulnerable to energy shocks, with crude reserves covering only about 25 days of demand. Roughly 40 percent of the country’s oil imports come from the Middle East via the Strait of Hormuz.
Sources said New Delhi had approached the Trump administration seeking permission to resume limited purchases of Russian crude due to the emerging supply risks.
Meanwhile, the US has signalled it may step up security in the Gulf. Trump said the US navy could escort oil tankers through the Strait of Hormuz if required, after Iran effectively threatened shipping through the critical route.
Bessent said the temporary waiver was intended to ease pressure created by what he described as Iran’s attempt to disrupt global energy supplies.
The decision comes as markets fear that the Middle East conflict may prolong disruptions in crude shipments and keep oil prices volatile.
