US ‘Allows’ India to Buy Russian Oil Under 30-Day Waiver Amid Middle East Supply Crisis

Key Points:

In the early morning of March 6, 2026, the US Treasury Secretary Scott Bessent made a post on X giving India a temporary 30-day waiver to purchase Russian oil. The United States has granted India temporary relief allowing its refiners to continue buying Russian oil. The move aims to ease pressure on the global market due to Middle East conflicts that are disrupting supply routes.

Announcing the decision, Bessent said that this short-term measure will not provide a significant benefit to the Russian government. “This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea,” he wrote. The General Licence 133, issued by the US Treasury’s Office of Foreign Assets Control, permits transactions involving this oil until April 3, 2026.

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The waiver is described as a short-term measure aimed at keeping energy supplies moving in international markets at a time of geopolitical tensions. “This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” he wrote. He emphasised that the decision would not significantly benefit Russia financially because it only applies to cargoes already stranded at sea due to sanctions.

This announcement by the Treasury Secretary comes at a time of heightened tensions in the Middle East due to the Israel-US strike on Iran. Military strikes on major energy infrastructure and the effective closure of the Strait of Hormuz—one of the world’s most important oil transit routes—have disrupted shipments from Gulf producers and pushed crude prices higher.

Brent Blend crude, which acts as a global benchmark, briefly climbed above $83 per barrel, while US crude also registered sharp gains as traders reacted to fears of supply shortages. Around 20% of the world’s oil shipments typically pass through the Strait of Hormuz, making any disruption there a major concern for energy markets.

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According to The Hindu, India currently holds crude reserves and petroleum product stocks sufficient for roughly 25 days of consumption. Strategic reserves and other available inventories together could cover several weeks of demand, giving refiners some time to adjust supply arrangements if the conflict continues.

In his remarks, Bessent reiterated that Washington expects India to gradually expand purchases of US oil. “President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded,” he said. He described India as a key strategic partner and said the temporary waiver would help stabilise global energy markets while alternative supply chains adjust.

Meanwhile, ongoing attacks on energy facilities and shipping in the Gulf have heightened concerns about long-term supply shortages.

[VP]

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