India has received a temporary boost to its energy security after the United States granted a 30-day waiver allowing Indian refiners to purchase Russian crude oil, even as tensions in the Middle East disrupt global supply chains.
The waiver was announced by Scott Bessent, the US Treasury Secretary, who said the move was intended to stabilise energy markets amid the ongoing conflict involving Iran.
The US Treasury Department’s Office of Foreign Assets Control (OFAC) issued a licence permitting the delivery and sale of crude oil and petroleum products of Russian origin that were loaded onto vessels as of March 5, 2026, to India.
According to the statement, the authorisation will remain valid until April 3, 2026.
US Calls India An “Essential Partner”
In a message posted on X, Bessent described India as a key strategic partner for Washington.
He said the temporary waiver would ensure that oil continues flowing into global markets while limiting financial benefits for Russia.
“President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded,” Bessent wrote.
“To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure authorises transactions involving oil already stranded at sea.”
The official added that the United States expects India to gradually increase imports of American energy supplies.
The waiver comes under the administration of US President Donald Trump, whose government previously imposed sanctions on major Russian oil companies such as Rosneft and Lukoil following Russia’s invasion of Ukraine.
Russian Oil Share In India’s Imports
India’s imports of Russian crude had dropped to around 1.1 million barrels per day in January, the lowest since November 2022, as New Delhi navigated US tariffs and sanctions pressure.
This decline pushed Russia’s share in India’s total crude imports down to 21.2%. However, industry data suggests the share rose again to about 30% in February.
The waiver now allows Indian refiners to temporarily continue purchasing Russian oil despite sanctions restrictions.
Middle East Conflict Disrupts Oil Supply
The decision comes as the ongoing conflict involving Iran has disrupted oil production across the Middle East.
Strikes on major oil facilities and Iran’s blockade of the critical shipping route known as the Strait of Hormuz — which carries roughly 20% of the world’s oil supply — have heightened concerns about global energy shortages.
Several key energy facilities have reportedly been hit during the escalation, including the Saudi Aramco facility at Ras Tanura and Iraq’s massive Rumaila oil field.
Oil Prices Rise But India Unlikely To Raise Fuel Rates
The conflict involving the United States, Israel and Iran has already pushed global crude prices higher.
Benchmark Brent crude climbed to $83.07 per barrel, reflecting fears of prolonged supply disruptions if the Strait of Hormuz remains closed.
However, sources in India indicated that despite the surge in global oil prices, there are currently no plans to increase petrol and diesel prices domestically.