U.S. grants India 30-day waiver for Russian oil purchases as Iran conflict disrupts Gulf supplies and pushes global oil prices higher.
The United States has granted India a temporary 30-day waiver to continue purchasing Russian crude oil, a move that comes amid intensifying concerns over global energy supplies due to the ongoing conflict involving Iran. The decision marks a notable shift in Washington’s stance after it had earlier imposed a 25% “penalty” tariff on India for importing Russian oil. That tariff, however, was revoked last month. With the war in the Middle East disrupting energy markets and threatening supply chains, the waiver is intended to ease immediate supply pressures and stabilize oil markets.
Oil prices have reacted sharply to the growing geopolitical tensions. West Texas Intermediate crude surged by 8.51%, or $6.35, to close at $81.01 per barrel on Thursday, marking its biggest single-day increase since May 2020. Meanwhile, the global benchmark Brent crude climbed 4.93%, or $4.01, to settle at $85.41 per barrel. These price spikes highlight the market’s sensitivity to disruptions in key oil-producing regions. However, on Friday both benchmarks eased slightly, with Brent and WTI declining more than 1% to trade at around $84.42 and $79.92 per barrel respectively.
The waiver allowing India to buy Russian crude is seen as a measure that could reduce pressure on global oil supplies. India plays a significant role in global energy markets, as it is the world’s fourth-largest refining hub and the fifth-largest exporter of petroleum products. Any major shift in India’s crude sourcing strategy therefore has a direct impact on international supply dynamics.
In recent months, India had begun replacing Russian crude imports with supplies from the Middle East following pressure from Western countries. However, analysts say the escalating conflict involving Iran and the resulting disruptions in Gulf energy flows have forced New Delhi to reconsider its sourcing strategy. With supplies from the Gulf region increasingly uncertain, India has started strengthening its energy purchases from Russia again in order to maintain supply stability.
Despite allowing the temporary waiver, U.S. officials emphasized that the measure would not deliver major financial benefits to Moscow. U.S. Treasury Secretary Scott Bessant said the exemption primarily permits transactions involving Russian oil shipments that are already stranded at sea and awaiting delivery. According to him, the short-term relief is designed to address immediate logistical and supply challenges rather than provide long-term economic gains for Russia.
At the same time, the U.S. government is taking additional steps to curb rising oil prices and support the stability of global energy markets. These measures include offering political risk insurance to tankers navigating the Gulf region, where escalating tensions have increased shipping risks. The conflict has already pushed U.S. crude prices up by roughly 20% this week alone.
U.S. President Donald Trump indicated that further steps may be taken soon to ease pressure on oil markets. He suggested that ongoing U.S. actions are aimed at improving long-term stability in the region and bringing greater predictability to energy prices.
Analysts have also cautioned that Brent crude prices could continue rising beyond the $80 per barrel range as uncertainty persists in global energy markets. Experts believe the likelihood of the Strait of Hormuz reopening quickly remains very low under current conditions. The crucial maritime route, which handles roughly 20% of the world’s oil shipments, has experienced a significant slowdown in traffic due to heightened regional tensions, security concerns, and a sharp increase in insurance costs for oil tankers. These developments have added further pressure on global oil supply chains and contributed to volatility in energy prices.
