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Fri, 06 Mar 2026

Fri, 06 Mar 2026 US eases sanctions on Russian oil sales to India during Iran conflict

Treasury Secretary Scott Bessent gives India a 30-day waiver to buy Russian crude as a "stop gap measure".
US Temporarily Eases Sanctions on Russian Oil Sales to India The US government has granted a 30-day waiver, allowing India to purchase Russian oil currently stranded at sea. The move aims to stabilize global energy markets amid escalating tensions in the Middle East. India Faces Energy Crisis as Supplies Halt Tensions between the US and Iran have led to an indefinite halt in supplies through the Strait of Hormuz, where nearly half of India's crude oil imports pass through. This has triggered fears of an impending energy crisis, with crude oil stocks expected to last only 25 days. US Pressure on India Relaxes for Now The waiver does not provide significant financial benefits to Russia and is seen as a short-term measure to alleviate pressure. It allows commercial deals to be finalized for the sale of about 145 million barrels of Russian crude stranded at sea. India's Dependence on Middle Eastern Oil Remains High Despite the waiver, India's reliance on oil imports from the Middle East remains significant, with 90% of its crude coming from this region. The US sanctions had forced buyers to seek alternatives, but the temporary reprieve is seen as a pragmatic move to ensure continued energy supplies. Waiver Not Expected to Last Forever Analysts say the waiver does not change India's structural exposure to Middle Eastern supply flows and that Russian oil imports remain an estimated 20% of India's total imports. The US approach to India's Russian oil imports has been relaxed, with tariffs on Indian oil imports reduced from 50% to 18%.