Washington DC — Facing disruptions to shipping through the Strait of Hormuz amid the Gulf crisis, the United States on Thursday approved a 30-day waiver allowing India to purchase Russian oil to meet immediate energy needs.
U.S. Treasury Secretary Scott Bessent described the short-term waiver as a measure to keep oil flowing into global markets. He said it is limited to transactions involving cargo already stranded at sea and is not intended to provide significant financial benefit to the Russian government. Bessent also called India an essential partner and said the administration expects New Delhi to increase purchases of U.S. oil over time, describing the waiver as a temporary stop-gap to ease pressure from what he called Iran’s attempt to hold global energy supplies hostage.
The waiver comes amid heightened concerns over energy supply in the Middle East after a Feb. 28 joint U.S.-Israel strike on Iranian territory. Some reports following the strike alleged it led to the death of Iran’s supreme leader, though such accounts have been disputed and remain unverified.
India relies on the region for nearly 40 percent of its oil imports, with a large share transiting the Strait of Hormuz. Indian officials, according to sources, are monitoring the situation twice daily and say the country is in a comfortable position on energy security. They report that strategic stocks are being replenished daily and that there are currently no global shortages of LPG, LNG or crude oil. India is in contact with other suppliers and says it is well prepared to manage potential supply disruptions thanks to adequate inventories and diversified sourcing.
India has continued to import Russian crude under existing contracts, and the government is keeping a close watch on international markets to ensure uninterrupted supplies. The U.S. waiver is intended to be temporary while authorities assess the evolving situation in the region.
