The United States has issued a temporary 30-day waiver permitting Indian refiners to purchase Russian crude stranded at sea, as disruptions from the ongoing Iran conflict threaten global energy supplies.
US Treasury Secretary Scott Bessent announced the waiver on Thursday, noting that it applies to Russian oil and petroleum products currently unable to reach their regular markets due to closed or unsafe maritime routes. He described the measure on X as a short-term fix to ease supply pressures, emphasising that it “will not provide significant financial benefit to the Russian government.”
The waiver comes amid a blockade of the Strait of Hormuz, a key global shipping corridor, which has compounded volatility in energy markets. Unlike broader exemptions from secondary sanctions previously imposed on India, this action addresses a specific, acute supply emergency triggered by the Middle East conflict. Secretary Bessent added that India, a key US partner, is expected to resume purchasing American crude once the immediate crisis passes.
Indian refiners have quickly moved to secure cargoes under the temporary waiver. Reliance Industries, the country’s largest private refiner, is reportedly seeking Russian barrels to process at its domestic-focused refinery while continuing to run export-oriented facilities on non-Russian grades. Several million barrels have already been arranged in recent days amid limited alternatives.
The waiver arrives as global oil prices remain elevated, with Brent crude trading above $85 per barrel and West Texas Intermediate (WTI) above $81, levels not seen in three years. Analysts say the measure provides immediate relief for Indian refiners facing supply constraints, while also stabilising regional energy markets affected by the Iran conflict.
Secretary Bessent is scheduled to travel to Paris next week to meet Chinese Vice Premier He Lifeng ahead of President Donald Trump’s visit to China from March 31 to April 2. Talks will focus on encouraging Beijing to reduce purchases of Russian and Iranian oil and shift toward American crude and liquefied natural gas. Other discussion points are expected to include expanding Chinese purchases of US soybeans and Boeing aircraft, easing rare-earth export restrictions, and AI chip imports.
US officials are reportedly drafting tighter export regulations for AI chips, including a possible cap on shipments of Nvidia and AMD products to Chinese companies, amid ongoing concerns about technology transfers.
The limited waiver for India is part of a broader US strategy to stabilise energy markets in the short term while realigning global oil flows toward American producers. Observers note that the coming weeks will test whether this measured approach can provide immediate market relief while supporting the broader US economic and geopolitical agenda in Asia.
