Temporary U.S. decision aims to stabilise global oil markets amid Middle East conflict
The United States has granted a temporary 30-day waiver allowing India to purchase Russian oil shipments currently stranded at sea, in a move intended to stabilise global energy markets during ongoing geopolitical tensions.
According to senior U.S. officials, the waiver allows Russian oil cargoes that were loaded before new sanctions took effect to be sold to Indian refiners. Many of these shipments had remained without buyers after Washington tightened restrictions on Russian energy exports.
The decision comes as global oil supply faces major disruptions due to escalating conflict involving Iran and the United States.
U.S. says waiver will keep oil flowing into global markets
U.S. Treasury Secretary Scott Bessent confirmed the measure, describing it as a temporary step to maintain stability in the global oil supply chain.
Bessent said the waiver was necessary to prevent oil already in transit from being removed entirely from the market.
“India is an essential partner of the United States, and this stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” he said.
The waiver applies only to cargoes already loaded onto tankers before the latest sanctions and does not allow new Russian oil shipments to be arranged under the same exemption.
India faces energy risks amid Middle East tensions
The decision also reflects concerns about India’s vulnerability to disruptions in Middle Eastern oil supplies.
India imports a significant share of its crude oil from the region, with about 40% of its oil shipments passing through the Strait of Hormuz, one of the most critical global oil routes.
The situation has worsened after Iran reportedly closed the Strait of Hormuz during its ongoing conflict with the United States, a move that has disrupted nearly 20% of the world’s oil supply passing through the route.
India currently holds crude reserves sufficient for around 25 days of domestic demand, making continued imports essential for maintaining energy security.
Indian refiners move quickly to secure Russian cargoes
Following the waiver announcement, several Indian state-run refiners have begun negotiations with traders to secure Russian crude shipments.
Companies involved include:
- Indian Oil Corporation
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
- Mangalore Refinery and Petrochemicals Limited
Industry sources say around 20 million barrels of Russian oil have already been purchased by Indian refiners for prompt delivery.
Private energy giant Reliance Industries has also reportedly approached traders to secure additional Russian crude cargoes.
President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded.
— Treasury Secretary Scott Bessent (@SecScottBessent) March 6, 2026
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.…
Russian oil pricing shifts as demand returns
Traders say Russian Urals crude is currently being offered to Indian buyers at a premium of $4–$5 per barrel over Brent crude, delivered for shipments arriving in March and early April.
This represents a major shift compared with February, when Russian crude was trading at around $13 per barrel below Brent due to weaker demand.
Energy traders say availability of crude has now become a bigger concern than pricing.
“More than prices, availability of molecules is the issue,” a trader involved in Russian oil sales to India said.
India balancing energy security and geopolitical pressure
India has been one of the largest buyers of discounted Russian oil since Western sanctions were imposed after Russia’s invasion of Ukraine in 2022.
However, earlier this year New Delhi reduced purchases under pressure from Washington, which aimed to limit Moscow’s energy revenues.
The latest waiver temporarily eases that pressure while helping global markets avoid a sudden drop in oil supply during an already volatile period.
Global energy markets remain uncertain
Energy analysts say the U.S. decision reflects concerns that blocking the stranded cargoes entirely could have triggered sharp spikes in oil prices and further strained global supply chains.
By allowing the shipments to reach India, Washington hopes to maintain stability in global oil markets while continuing broader sanctions on Russian energy exports.
With tensions in West Asia still escalating, the global energy market is expected to remain highly volatile in the coming weeks.