US won’t extend oil waiver; India faces energy squeeze
The decision also reflects a broader shift in the US policy towards intensifying economic pressure on both Russia and Iran, even as global energy markets remain volatile due to the ongoing conflict and supply uncertainties
The US has confirmed it will not renew the 30-day sanctions waiver that had allowed countries, including India, to import limited quantities of Russian and Iranian oil, signalling a return to stricter enforcement and raising fresh concerns over energy supplies and costs.
Announcing the decision, US Treasury Secretary Scott Bessent said the temporary licence — granted last month to ease global supply disruptions — had expired and would not be extended.
The waiver, issued on March 5, had permitted Indian refiners to purchase Russian crude already loaded on vessels and stranded at sea amid escalating geopolitical tensions. Designed as a short-term measure, it was aimed at stabilising global oil markets hit by the West Asia crisis and disruptions in key shipping routes.
With its expiry earlier this month, Washington has now drawn a firm line, making it clear that no further exemptions will be granted for purchases of Russian or Iranian oil.
The move is expected to have direct implications for India, one of the largest buyers of discounted Russian crude since western sanctions were imposed on Moscow. Industry observers say the end of the waiver could affect supply chains, tighten availability of cheaper oil and potentially push up import costs.
The decision also reflects a broader shift in the US policy towards intensifying economic pressure on both Russia and Iran, even as global energy markets remain volatile due to the ongoing conflict and supply uncertainties.
During the waiver period, India had leveraged the temporary relief to secure cargoes already in transit, helping cushion domestic refiners against price spikes. However, with the window now closed, refiners may be forced to diversify sourcing or absorb higher costs in an already strained market.
While New Delhi has not officially reacted to the US decision, the end of the waiver is likely to recalibrate India’s oil procurement strategy in the coming weeks, as it balances cost considerations with compliance risks in an increasingly complex sanctions environment.
