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India received a temporary boost in energy supply on Friday after US Treasury Secretary Scott Bessent announced a 30-day waiver allowing Indian refiners to import Russian crude oil.
The Treasury Department’s Office of Foreign Assets Control (OFAC) issued a licence titled “Authorizing 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 licence permits transactions—including deliveries from vessels previously restricted under sanctions—until April 3, 2026.
This temporary measure is intended to stabilize global energy markets amid heightened tensions in the Middle East, particularly as Iran has disrupted maritime trade through the Strait of Hormuz, a strategic route for nearly 20% of global oil shipments.
Secretary Bessent highlighted India’s significance as a key partner of the United States, stressing that the waiver is a short-term solution aimed at stranded oil shipments, with no significant financial gain for Russia. He added that the US anticipates New Delhi will increase purchases of American oil in the near future.
The move comes against a backdrop of earlier US sanctions on Russian oil majors Lukoil and Rosneft imposed last November to pressure Russia over its Ukraine invasion. India’s imports of Russian crude fell to approximately 1.1 million barrels per day in January 2026, down from November 2022 levels, before rising again to around 30% of total oil imports in February.
Meanwhile, oil production in the Middle East has been affected by attacks on key facilities, including Saudi Aramco’s Ras Tanura refinery and Iraq’s Rumaila oil field, further tightening global supply. The ongoing conflict involving the US and Israel against Iran has contributed to rising oil prices, with Brent crude reaching $83.07 per barrel, although Indian petrol and diesel prices are expected to remain stable despite the surge.
