US grants 30-day waiver to India to buy Russian oil as shipments stranded at sea

PTC News Desk: The United States on Thursday issued a temporary waiver to India allowing to buy Russion Oil, in a move aimed at easing pressure on global oil markets amid heightened geopolitical tensions and supply disruptions triggered by the ongoing US-Iran war.

The waiver applies to Russian oil shipments that had already been loaded onto tankers before the latest US sanctions took effect but could not find buyers after restrictions became stricter. Officials said the move allows these shipments to be delivered and sold to India within a limited time, helping avoid supply shortages that could put more pressure on global energy markets.

Confirming the development, US Treasury Secretary Scott Bessent said that India is an important partner of the United States. He added that the temporary step would ease pressure caused by Iran’s actions affecting global energy supplies. He also said the US expects India to increase its purchases of American oil.

The waiver comes at a time when India remains vulnerable to disruptions in Middle Eastern oil supplies. According to Reuters, India has crude reserves that can meet only about 25 days of demand and imports nearly 40 percent of its oil from the region. Much of this oil passes through the Strait of Hormuz.

Iran has effectively closed the Strait of Hormuz, a key route through which about 20 percent of the world’s oil supply passes, as its conflict with the United States continues.

India, one of the world’s largest oil importers, became a major buyer of discounted Russian oil after Western sanctions were imposed on Russia following its invasion of Ukraine in 2022. However, India started reducing these purchases earlier this year due to pressure from Washington, which wants to limit Russia’s income from oil sales.