US Issues 30-Day Waiver Allowing India To Buy Russian Oil Already Stranded At Sea As Middle East Conflict Threatens Global Supply

The United States has issued a temporary 30-day waiver allowing Indian refiners to purchase Russian crude oil that is already stranded at sea, as tensions in the Middle East raise fears of global supply disruptions.

The US Treasury Department announced that it would allow Indian refiners to purchase Russian oil cargoes that had already been loaded on vessels as of March 5, 2026.

The license, issued by the Office of Foreign Assets Control (OFAC), allows transactions involving Russian crude oil and petroleum products destined for India until April 3, 2026.

US Treasury Secretary Scott Bessent said the measure is meant to ensure oil continues flowing into global markets during the current geopolitical crisis.

He explained that the waiver only applies to cargoes already at sea and does not allow new long-term purchases of Russian crude.

According to him, the step is intended to reduce pressure on global oil markets while limiting financial benefits to the Russian government.

The waiver comes as tensions rise in the Middle East following military strikes involving the United States, Israel, and Iran.

Iran has effectively disrupted shipping through the Strait of Hormuz, a critical maritime chokepoint that carries a large share of the world’s crude oil shipments.

India imports about 40% of its crude oil from the Middle East, much of it transported through the Strait of Hormuz, making the country vulnerable to supply disruptions.

Analysts say the US waiver is intended to prevent shortages in Asia and help stabilise global oil markets.

After the announcement, Indian refiners moved quickly to secure Russian crude cargoes for immediate delivery.

Industry sources told Reuters that Indian state-run refiners have already purchased around 20 million barrels of Russian crude from traders.

The companies involved include Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals Limited.

Sources also said Reliance Industries has approached traders to secure prompt Russian oil shipments.

Market conditions have changed rapidly due to supply concerns.

Russian Urals crude, which was earlier sold to India at steep discounts, is now being offered at a premium of $4-$5 per barrel above Brent crude for deliveries scheduled in March and early April.

Just a month earlier, the same grade was sold at a discount of about $13 per barrel in February.

Traders say availability of cargoes has become the main concern. One trader said refiners are focusing more on securing supply rather than price as geopolitical risks increase.

Oil prices rose about 5% to above $90 per barrel after reports of supply disruptions in the Gulf region. Energy officials warned that prolonged conflict could have major consequences for global markets.

Qatar’s energy minister said escalating tensions could push oil prices to $150 per barrel if oil and gas production in the Gulf region is forced to stop.

Meanwhile, Kuwait has reportedly started cutting production at some oilfields amid growing uncertainty.

The United States had previously pressured India to reduce Russian oil imports following Russia’s invasion of Ukraine in 2022.

References: Theguardian, ndtv