Iran crisis relief for India? US announces 30-day waiver for New Delhi to buy Russian oil

As tensions continue in the Middle East and the crisis hampers shipping routes through the Strait of Hormuz, the US granted India a 30-day waiver to purchase Russian oil. US Treasury Secretary Scott Bessent, in a post on X (formerly Twitter), informed of the move. 

The United States has issued a temporary 30-day waiver to allow India to purchase Russian oil to meet its energy requirements. This move comes amid escalating tensions in West Asia, and the conflict in the Gulf is hampering shipping routes that pass through the Strait of Hormuz. 

US Treasury Secretary Scott Bessent, in a post on X (formerly Twitter), informed of the move and said, "President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded."  

Furthermore, Bessent said that the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. He emphasised that this measure will "not provide significant financial benefit to the Russian government."

"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 will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea," he added. 

He called New Delhi an "essential partner" of the Washington and said in the post, "India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage."

India's oil trade 

The waiver comes at a time when India continues to face potential risks linked to energy supply disruptions in the Middle East, as per ANI. 

Meanwhile, tensions continue in the region after a joint US-Israel military strike on February 28 on Iranian territory resulted in the death of Iran's Supreme Leader Ayatollah Ali Khamenei and other senior figures.

India sources nearly 40 per cent of its oil imports from the region, with a significant portion transported through the strategically important Strait of Hormuz.

ANI reported, citing sources, that India is reviewing its energy situation twice a day and is in a very comfortable position regarding its energy security.

India's current stock position is also seen to be comfortable, with stock being replenished every day. As per ANI's sources, there is no shortage of LPG or LNG as well as crude oil, in the world. Sources also noted that India is closely monitoring developments in the region but is well-prepared to manage any potential supply-side challenges due to adequate inventory levels and diversified sourcing.

Citing sources, ANI further reported that the Indian government is keeping a close watch on the global energy market to ensure uninterrupted supplies for the country. 

(with ANI inputs) 

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