India

India has received a temporary waiver from the United States allowing its refiners to continue purchasing Russian crude oil for the next 30 days, as global energy markets face disruptions linked to escalating conflict in the Middle East.

The announcement was made on Friday by US Treasury Secretary Scott Bessent, who confirmed that the US Treasury Department had issued a special licence permitting Indian refiners to import Russian-origin crude oil already loaded on vessels.

According to the US Treasury’s Office of Foreign Assets Control (OFAC), the licence authorizes “the delivery and sale of crude oil and petroleum products of Russian Federation origin loaded on vessels as of March 5, 2026 to India.” The authorization will remain valid until the end of the day on April 3, 2026.

The waiver comes at a time when global energy markets are under pressure due to rising geopolitical tensions in the Middle East and supply disruptions affecting key oil-producing regions.

Temporary Measure To Stabilise Energy Markets

The US government described the move as a short-term step designed to ensure stability in the global oil market. Officials indicated that the waiver applies only to oil shipments that were already in transit or stranded at sea due to existing sanctions regimes.

In a statement posted on the social media platform X, Secretary Bessent said the measure would help maintain the flow of oil in international markets during a period of uncertainty.

He stated that the waiver was intentionally limited to 30 days and would not significantly benefit the Russian government financially, as it only covers cargoes that had already been loaded on vessels.

Bessent also highlighted the importance of the relationship between the United States and India, describing India as an “essential partner.” He added that Washington expects India to expand purchases of American oil in the future.

Impact Of Russia Sanctions

The development follows sanctions imposed by the United States last November targeting major Russian oil companies Lukoil and Rosneft as part of efforts to pressure Moscow over its invasion of Ukraine.

After the sanctions were introduced, India’s imports of Russian crude fell significantly. Industry data shows that in January 2026 India imported about 1.1 million barrels per day of Russian oil, the lowest level since November 2022.

Russia’s share in India’s overall oil imports dropped to 21.2 percent during that period. However, the share reportedly increased again to around 30 percent in February, indicating renewed reliance on discounted Russian supplies.

India has been one of the largest buyers of Russian oil since the Ukraine conflict began in 2022, benefiting from lower prices compared to other international suppliers.

Middle East Conflict Adds Pressure

The US waiver also comes amid growing instability in the Middle East, where ongoing military tensions have affected oil production and shipping routes.

Oil production across parts of the Gulf has been disrupted following strikes on major oil facilities. Among the installations reported to have been hit are Saudi Aramco’s Ras Tanura refinery in Saudi Arabia and Iraq’s Rumaila oil field, both considered significant contributors to global oil supply.

The situation has further intensified after Iran reportedly blocked the Strait of Hormuz, a critical maritime passage through which nearly 20 percent of the world’s oil supply passes.

The blockade has raised concerns among energy-importing countries, including India, about the security of global oil shipments and potential supply shortages.

Oil Prices Rise

The conflict involving the United States and Israel against Iran has also led to a rise in global oil prices. On Friday morning, Brent crude oil was trading at $83.07 per barrel, reflecting the growing uncertainty in global energy markets.

Despite the increase in international prices, government sources in India indicated that there are currently no plans to increase domestic petrol and diesel prices.

Energy Security Concerns

India, one of the world’s largest oil importers, relies heavily on overseas supplies to meet its energy needs. Any disruption in global supply chains can have a direct impact on fuel availability and economic stability.

The temporary waiver is expected to provide short-term relief to Indian refiners while global markets adjust to the evolving geopolitical situation.

Energy analysts note that the coming weeks will be important for determining whether the Strait of Hormuz remains open and whether further disruptions occur in the Middle East’s oil infrastructure.