US grants India 30-day waiver to buy Russian oil amid Hormuz disruption

The United States has granted India a temporary waiver allowing its refiners to purchase certain Russian oil shipments that are currently stranded at sea due to disruptions caused by the Iran conflict. Scott Bessent announced the 30-day waiver on Thursday, saying it was designed as a short-term solution to ease pressure on global energy supplies after shipping routes through the Strait of Hormuz became unsafe or inaccessible.

In a statement posted on social media, Bessent said the waiver would help stabilise markets while ensuring the measure does not significantly benefit the Russian government. The exemption was issued by the Office of Foreign Assets Control and allows Russian oil and petroleum products already at sea to be rerouted to Indian ports.

The waiver will remain in force until 4 April and applies only to existing cargoes; it does not authorise new shipments of Russian crude. Officials emphasised that the move does not represent a broader relaxation of US sanctions on Russian oil purchases. Instead, it addresses a temporary supply emergency caused by disruptions to global shipping routes following the war in the Middle East. India is one of the world’s largest buyers of discounted Russian oil and has continued imports even after Western sanctions were imposed on Russia.

According to reports, Reliance Industries — India’s largest private refiner — has already begun seeking additional Russian crude cargoes under the waiver.

Sources cited by Bloomberg say the company intends to process these shipments at refineries serving India’s domestic market while continuing to operate its export-focused facilities using non-Russian grades.

The decision comes as oil prices surge amid the widening conflict. At the time of the announcement, Brent crude was trading above $85 per barrel, while West Texas Intermediate had risen above $81 — the highest levels in three years.

Washington indicated that the waiver is part of a broader strategy to stabilise energy markets in the short term while encouraging partners to increase purchases of American oil in the future. Bessent said the US expects India, which it considers an important strategic partner, to boost imports of US crude once the immediate supply crisis passes.

The announcement also comes ahead of Bessent’s planned meeting with Chinese Vice Premier He Lifeng in Paris next week. The talks are intended to prepare for a planned summit between Donald Trump and Xi Jinping scheduled for late March in China. Washington is expected to push Beijing to reduce purchases of Russian and Iranian oil and instead increase imports of American crude and liquefied natural gas.

Analysts say the request could prove difficult, as China relies heavily on discounted energy supplies from both Russia and Iran. The meeting is also expected to address broader trade issues, including Chinese purchases of US agricultural products and aircraft, rare-earth export controls and new US restrictions on advanced artificial intelligence chips.

Written by Thomas Nussbaumer