WASHINGTON / NEW DELHI — In a major shift in wartime energy policy, US Energy Secretary Chris Wright and Treasury Secretary Scott Bessent have defended the decision to grant India a temporary waiver to purchase Russian crude oil. The 30-day “reprieve,” announced on Friday, March 6, 2026, is designed to prevent a global energy collapse as the war in Iran enters its second week and oil prices surge past $90 per barrel.
1. A “Practical Way” to Ease Market Pressure
Energy Secretary Chris Wright clarified that the waiver is a targeted, short-term measure rather than a shift in stance toward Moscow.
- Refining the “Stranded” Barrels: The waiver specifically applies to Russian oil already on ships at sea. Wright noted that the US reached out to India, saying, “Buy that oil and bring it into your refineries.”
- Market Flow: By allowing Indian refiners to process these “stranded” barrels and move them into the global market, the US hopes to dampen the volatility caused by the effective closure of the Strait of Hormuz.
2. Why the Reprieve? The Iran War Factor
The sudden flexibility from the Trump administration follows the February 28 assassination of Iranian Supreme Leader Ayatollah Ali Khamenei.
- Regional Shutdown: Iranian retaliatory strikes have shuttered several oil and gas fields across Saudi Arabia, Kuwait, and Qatar.
- The Hormuz Chokepoint: With one-fifth of the world’s oil supply trapped behind the security threats in the Strait of Hormuz, global supply chains are at a breaking point.
- Tariff Context: This move comes just weeks after the US removed a 25% tariff on Indian imports—a penalty originally imposed for India’s ties to Moscow—after President Trump claimed India had agreed to stop buying Russian crude. The current war has forced a temporary reversal of that “zero-buy” policy.
3. The “30-Day” Limit: Scott Bessent’s Treasury Directive
Treasury Secretary Scott Bessent emphasized that this is a “deliberately short-term” measure intended to prevent Iran from taking “global energy hostage.”
- Supporting US Oil: Bessent stated that while India helps alleviate the immediate crisis by processing Russian barrels, the US expects New Delhi to eventually “ramp up purchases of US oil” as American production hits record highs.
- Impact on Russia: The Treasury Department claims the 30-day window limits the financial benefit to the Kremlin, focusing only on oil that was already in transit when the Iran conflict escalated.
US-India Energy Policy Snapshot: March 2026
| Feature | Current Policy (The Waiver) | Previous Policy (Pre-Conflict) |
| Russian Oil | Allowed for 30-day window | Prohibited (Subject to 25% Tariff) |
| Status of Tariffs | Suspended | Imposed (then removed in Feb 2026) |
| Condition | Only for oil “already on ships” | No new contracts with Moscow |
| Primary Goal | Lower Brent crude prices ($90+) | Isolate the Russian economy |