West Asia crisis: US issues 30-day waiver allowing Indian refiners to purchase Russian oil

Amid escalating tensions in West Asia, the United States has granted India a temporary 30-day waiver allowing Indian refiners to continue purchasing Russian crude oil that is currently stranded at sea.

The announcement was made by US Treasury Secretary Scott Bessent, who said the decision was aimed at preventing disruption in global energy markets while the region grapples with heightened conflict and supply uncertainties.

The development underscores the complex balancing act India faces as it navigates its energy security needs while maintaining strategic ties with both Washington and Moscow.

“President Donald Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. 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,” Bessent said in a post on X.

He clarified that the measure was deliberately short-term and narrowly structured to ensure it does not provide substantial financial gains to Moscow.

“This will not deliver meaningful financial benefit to the Russian government as it only authorises transactions involving oil that is already stranded at sea,” Bessent said.

The waiver comes at a time when the global energy market is under strain due to the unfolding crisis in West Asia, which has raised fears of supply disruptions and sharp price volatility.

Washington described India as a key strategic partner and indicated that the temporary relief was also intended to provide time for New Delhi to recalibrate its energy sourcing.

“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil,” Bessent added.

The US administration framed the decision as a stabilising step to prevent further pressure on the global energy supply chain.

Bessent also linked the move to broader regional tensions, accusing Iran of attempting to leverage the crisis to influence global energy flows.

“This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” Bessent said.

Notably, India imports nearly 88 per cent of its crude oil requirement and about half of its natural gas needs. A large share of supplies come from Iraq, Saudi Arabia, the UAE and Kuwait which transits through the strategically vital Strait of Hormuz passage before reaching Indian refineries.

Following the recent conflict in West Asia, Iran moved to shut the Strait of Hormuz, raising concerns over energy supplies to major importers including India.

Last week a senior government official had indicated that India could recalibrate procurement by increasing purchases from alternative suppliers, including Russia and producers outside the Gulf region — an approach successfully deployed during earlier geopolitical crises.