Treasury Secretary Scott Bessent gives India a 30-day waiver to buy Russian crude as a "stop gap measure".
2 hours ago
Cherylann Mollan
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The US government has temporarily eased sanctions to allow India to buy Russian oil currently stranded at sea, amid escalating tensions in the Middle East.
Treasury Secretary Scott Bessent said the 30-day waiver was a "deliberate short-term measure" to allow oil to keep flowing in the global market.
Millions of barrels of oil and gas are stuck near the Strait of Hormuz - a narrow Gulf chokepoint through which nearly half of India's crude oil and gas imports transits. Tehran has threatened to attack vessels attempting to pass through since the US and Israel began their war against Iran.
The US sanctioned Russian oil following Moscow's invasion of Ukraine, forcing buyers to seek alternatives.
Washington has put particular pressure on India - a major buyer of Russian energy - to stop buying its oil in an effort to reduce money flowing to fund the invasion.
Bessent said the waiver would "not provide significant financial benefit" to Russia as it only authorised transactions involving oil already stranded at sea.
"This stop-gap measure will alleviate pressure caused by Iran's attempt to take global energy hostage," Bessent said on X.
The indefinite halt in supplies has triggered fears of an impending energy crisis in India, which reportedly has crude oil and gas stocks to last for about 25 days.
Meanwhile, US President Donald Trump has warned the war against Iran, which began last Saturday, could stretch on for four to five weeks or longer.
On Wednesday, Petronet LNG, India's top gas importer, issued a force majeure notice to its supplier, QatarEnergy and its local buyers after its LNG tankers were unable to reach the loading terminal at Ras Laffan in Doha.
The Gas Authority of India Ltd (Gail) and Indian Oil Corp (IOC) have already begun reducing gas supplies to industrial customers, Reuters news agency reported on Tuesday.
In terms of oil, India imports 90% of its crude.
Around half of this, which amounts to 2.5 to 2.7 million barrels a day, travels through the Strait of Hormuz, largely from Iraq, Saudi Arabia, the United Arab Emirates and Kuwait.
Experts say that a supply crunch due to the closure of the strait could to lead to inflation and push up India's fiscal deficit.
With the waiver in place, about 145 million barrels of Russian crude which remain on the water could potentially be redirected toward Indian ports if commercial deals are finalised, Sumit Ritolia, lead research analyst at Kpler, told the BBC.
"However, the waiver does not fundamentally change India's structural exposure to Middle Eastern supply flows," he added.
Russian oil makes up an estimated 20% of India's total imports. The waiver marks a notable shift in the US approach to India's Russian oil imports.
Not long ago, Trump imposed 50% tariffs on India, including a 25% levy for importing oil from Russia. Trump alleged India's purchase of Russian oil was helping fund Russia's war in Ukraine.
India has always defended its purchase of Russian crude, saying that it needs to meet the energy needs of its vast population and has the right to do business with its trading partners.
But since late 2025, India reportedly began reducing its imports of Russian crude and has since boosted its crude oil purchases from the US.
He wrote on his Truth Social platform that Indian Prime Minister Narendra Modi had "agreed to stop buying Russian oil, and to buy much more oil from the United States and, potentially, Venezuela".
India has never officially confirmed reducing its imports of Russian crude and maintains it will not allow its trading relations to be dictated by other countries.
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