US Grants 30-Day Waiver Allowing India to Import Russian Oil Stranded at Sea
The US has issued a 30-day waiver that permits India to purchase Russian crude currently stuck on tankers, a temporary move meant to keep global supplies flowing amid rising Middle East tensions.
Treasury Secretary Scott Bessent described the measure as short-lived and limited: it applies only to shipments already at sea and, he said, is not intended to deliver a major financial windfall to Russia.
Millions of barrels are anchored near the Strait of Hormuz after Tehran threatened to target vessels in the area following a spike in hostilities involving Iran. The chokepoint handles a large share of India’s energy imports, heightening the risk of supply disruption.
India relies on foreign oil for about 90% of its needs, and roughly half of its crude — some 2.5 to 2.7 million barrels per day — passes through the Strait of Hormuz from suppliers including Iraq, Saudi Arabia, the UAE and Kuwait.
Officials warn prolonged disruption could push up inflation and widen India’s fiscal gap. The immediate squeeze has already prompted disruption in gas shipments.
Petronet LNG declared force majeure after tankers could not reach Qatar’s Ras Laffan terminal, and state buyers including GAIL and Indian Oil have cut industrial gas deliveries.
Analysts say the waiver could allow up to about 145 million barrels of Russian oil currently on the water to be redirected to India if commercial deals are completed. Still, experts note the move does not alter India’s long-term reliance on Middle Eastern flows.
The decision represents a notable softening of earlier US pressure on India to curb purchases of Russian fuel following Moscow’s invasion of Ukraine.
New Delhi maintains it will protect its energy security and make its own commercial choices. The US administration framed the waiver as a short-term fix to avert an immediate energy crunch while the region’s security situation remains uncertain.
President Trump has warned the conflict could continue for several weeks, underlining the risk of further disruption to trade and energy markets.
Treasury Secretary Scott Bessent described the measure as short-lived and limited: it applies only to shipments already at sea and, he said, is not intended to deliver a major financial windfall to Russia.
Millions of barrels are anchored near the Strait of Hormuz after Tehran threatened to target vessels in the area following a spike in hostilities involving Iran. The chokepoint handles a large share of India’s energy imports, heightening the risk of supply disruption.
India relies on foreign oil for about 90% of its needs, and roughly half of its crude — some 2.5 to 2.7 million barrels per day — passes through the Strait of Hormuz from suppliers including Iraq, Saudi Arabia, the UAE and Kuwait.
Officials warn prolonged disruption could push up inflation and widen India’s fiscal gap. The immediate squeeze has already prompted disruption in gas shipments.
Petronet LNG declared force majeure after tankers could not reach Qatar’s Ras Laffan terminal, and state buyers including GAIL and Indian Oil have cut industrial gas deliveries.
Analysts say the waiver could allow up to about 145 million barrels of Russian oil currently on the water to be redirected to India if commercial deals are completed. Still, experts note the move does not alter India’s long-term reliance on Middle Eastern flows.
The decision represents a notable softening of earlier US pressure on India to curb purchases of Russian fuel following Moscow’s invasion of Ukraine.
New Delhi maintains it will protect its energy security and make its own commercial choices. The US administration framed the waiver as a short-term fix to avert an immediate energy crunch while the region’s security situation remains uncertain.
President Trump has warned the conflict could continue for several weeks, underlining the risk of further disruption to trade and energy markets.
