U.S. Signals Limited Easing Of Russian Oil Sanctions To Favor India Amid Iran War

WASHINGTON / BRUSSELS — The Biden-Trump transition era has taken a pragmatic turn as the U.S.-Israel-Iran war threatens to derail the global economy. On Tuesday, March 10, 2026, the United States signaled to its European allies that any potential relaxation of sanctions on Russian crude will be strictly targeted, with India serving as the primary beneficiary.

The move comes as President Donald Trump explores “all options” to lower global oil prices, which surged toward $120 a barrel this week following the near-total closure of the Strait of Hormuz.

1. The India “Stop-Gap” Waiver

The U.S. Treasury Department, led by Secretary Scott Bessent, confirmed a temporary 30-day waiver allowing Indian refiners to purchase Russian oil that was already “on the water” as of March 5.

• The Logic: White House Press Secretary Karoline Leavitt described India as a “good actor” that had previously complied with Western sanctions. The waiver is intended to fill the immediate supply gap left by the Middle East conflict without providing a long-term financial windfall for Moscow.
• “Contained Scope”: During a G7 finance ministers’ call on Monday, U.S. officials emphasized that this relief is limited in both time and geography. EU Economy Commissioner Valdis Dombrovskis noted that the U.S. does not expect this to significantly boost Russian war revenues.
• India’s Stance: New Delhi remains firm that its energy procurement is guided by “national interest,” with officials stating they do not require “permission” to ensure domestic energy security.

2. Trump and Putin: The Oil Diplomacy

Following a one-hour phone call with Russian President Vladimir Putin on Monday, Trump suggested that the U.S. could suspend “certain oil-related sanctions” until the Middle East crisis eases.

• The “Excursion” Strategy: Trump characterized the military action in Iran as a “short-term excursion” that is “way ahead of schedule.” He claimed the war could be “over very soon,” a statement that briefly cooled market panic and pulled Brent crude back toward $90.
• The Quid Pro Quo: While the Kremlin described the call as “businesslike,” European allies are reportedly alarmed. The EU has warned that any broad easing of Russian sanctions would be “self-defeating,” potentially strengthening Russia’s hand in Ukraine while it continues to support Iran.

3. G7 Strategic Reserves on Standby

With roughly 20% of the world’s oil currently trapped behind the Iranian blockade, the G7 and the International Energy Agency (IEA) are preparing for a coordinated intervention.

• The Trigger: While the G7 stated they “stand ready” to release strategic reserves, a formal agreement has not yet been reached. Some members argue that reserves should be saved for a potential total cutoff of Gulf supplies.
• Saudi Pressure: Saudi Arabia and other OPEC members have already begun slashing supplies due to regional infrastructure damage, including a major missile strike on Bahrain’s BAPCO refinery on Monday.

Energy Crisis Pulse: March 11, 2026