US gives 30-days waiver to India to buy Russian oil amid global tensions

The United States has granted India a 30-day waiver allowing Indian refiners to purchase Russian crude currently stranded at sea, providing temporary relief amid growing disruptions in global oil supply caused by the escalating West Asia conflict. The move comes as tensions around the Strait of Hormuz raise concerns over the safety of oil shipments through one of the world’s most critical maritime routes.

US Treasury Secretary Scott Bessent said the waiver is intended to ensure that oil continues flowing into global markets despite disruptions linked to the Iran conflict. According to the statement, the measure is deliberately short-term and only permits transactions involving Russian crude that is already at sea, limiting any major financial benefit to Russia.

The decision comes at a time when tanker movement through the Strait of Hormuz has become increasingly uncertain due to security risks and insurance complications. War-risk underwriters have begun reassessing or cancelling coverage for vessels passing through the route, creating logistical challenges for countries heavily dependent on Gulf oil supplies.

Industry estimates suggest that more than 30 million barrels of Russian crude are currently afloat, offering a short-term alternative supply source for India. Reports indicate that Indian refiners have already begun purchasing prompt cargoes, with around 20 million barrels reportedly acquired from traders to ease immediate supply pressure.

For India, which imports nearly 90 percent of its crude oil requirements, the waiver could help control rising import costs and reduce pressure on inflation and the current account deficit. Analysts say access to discounted Russian crude has previously helped Indian refiners maintain margins, and the temporary waiver may offer a similar buffer while geopolitical tensions continue to disrupt global energy markets.