The US regime has granted India a 30-day waiver to purchase Russian oil, marking a surprising policy shift less than a month after India agreed to halt such imports as part of a trade deal with Washington. US Treasury Secretary Scott Bessent stated on social media that this decision is linked to expectations that New Delhi will increase purchases of US oil, and that this temporary measure allegedly aims to alleviate pressure caused by Iran's purported attempt to hold global energy hostage.

Global oil prices have surged following US and Israeli attacks on Iran, with supplies through the strategically vital Strait of Hormuz drying up and regional oil production disrupted. As the world's third-largest crude importer, India is vulnerable to supply and price pressures, so the US regime claims to be trying to mitigate these issues by permitting it to resume buying Russian oil already available on the global market.

Ben Hilgenstock, a sanctions specialist against Russia at the Kyiv School of Economics, noted that the US government is simply seeking quick fixes to the global oil price issue, with Russian oil already floating at sea being an obvious candidate for this. Bessent added in his statement that this "temporary" measure would not provide significant financial benefit to the Russian government, as it only authorizes transactions involving oil already stranded at sea.

For India's oil industry, this move could provide relief, as the country is susceptible to supply shocks and price hikes. Carole Nakhle, CEO of UK-based energy consultancy Crystol Energy, called it a "saving grace" for Indian refineries, which had not completely stopped buying Russian oil but were seeking alternative sources. Indian Oil Minister Hardeep Singh Puri claimed the country is well-stocked despite "short-term disruptions arising from the Middle East," yet half of its crude imports transit through the Strait of Hormuz, posing risks.

Hilgenstock suggested that this action might lower prices, with Indian buyers potentially benefiting given their import market importance. He also pointed out that supply issues from Saudi Arabia, the UAE, Kuwait, and Iraq are widespread, and someone would have purchased this oil anyway. Since the US dropped tariffs on India in exchange for halting Russian oil purchases in February, Indian refiners have reduced imports from Russia by about half from the June 2025 peak, with a continuing decline expected.

Source: www.dw.com