Washington has issued a 30-day waiver allowing Indian refiners to buy Russian crude to stabilise global oil supply amid West Asia tensions.
The near closure of the Strait of Hormuz, a key route for around 20% of global oil trade, has pushed crude prices higher and raised supply concerns.
Russia’s Urals crude is now being offered to Indian buyers at a $4–$5 premium over Brent, reversing earlier deep discounts as supply tightens.
The US has issued a 30-day waiver allowing India to purchase Russian crude oil amid worries of an oil supply disruption. Ongoing geopolitical tensions in West Asia have already sent crude prices sharply higher. The near-complete closure of the Strait of Hormuz has also jittered markets across the globe, as the strait accounts for nearly 20% of global trade routes, especially to Asia.
The evolving situation has raised concerns about meeting requirements not just for crude, but also for liquefied natural gas (LNG) and liquefied petroleum gas (LPG), for which, unlike crude oil, India does not have reserve stockpiles.
2 March 2026
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Treasury Secretary Scott Bessent on Friday said the 30-day temporary waiver is a measure to keep global oil supplies flowing amid disruptions linked to the West Asia conflict.
“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,” Bessent posted on X. “This deliberately short-term measure will not provide significant financial benefit to the Russian government, as it only authorizes transactions involving oil already stranded at sea,” he added.
India was particularly exposed during this crisis after the US concluded the first phase of an interim trade agreement, which Washington claimed meant India had stopped crude oil imports from Russia. Indian officials neither confirmed nor denied the claim.
However, the punitive tariffs imposed by Washington in 2025 compelled New Delhi to diversify its suppliers and actively seek crude imports from West Asia.
Over the last few months, New Delhi has reduced its energy imports from Moscow. With West Asia’s geopolitical tensions escalating and Russian crude imports limited, alternatives from the Americas would have significantly inflated India’s import bill due to longer routes and higher freight charges.
Bessent described the waiver as a stop-gap step and hinted that the US ultimately expects India to buy more American crude. “India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil,” he said. “This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage.”
Since 2022, Russia has been providing India crude at discounted rates, and India emerged as one of the top buyers of Russian energy. However, over the past year, pressure from the West has mounted, with critics claiming that India’s oil purchases were fuelling the ongoing Russia–Ukraine war.
According to a report by Reuters citing sources, state-run Indian refiners have begun purchasing millions of barrels of Russian crude for prompt delivery as they seek to secure alternative supplies amid uncertainty in West Asia.
The report said traders are currently offering Russia’s Urals crude to Indian buyers at a premium of $4–$5 per barrel over Brent on a delivered basis, reflecting tight availability. That marks a sharp shift from February, when similar cargoes were trading at a discount of about $13 per barrel, Reuters reported, citing traders.
