• Source:JND
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Iran-Israel War: Amid escalating tensions following cross-border strikes between Iran and Israel, the United States has issued a temporary 30-day waiver permitting Indian refiners to purchase Russian oil. The decision is aimed at stabilising global energy markets as geopolitical tensions in the Middle East continue to rise.

In a post on X (formerly Twitter), Treasury Secretary Scott Bessent wrote, "President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded.

To enable oil to continue flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government, as it only authorises transactions involving oil already stranded at sea."

He added, "India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage."

According to the US Treasury Department, the waiver allows transactions including those involving vessels blocked under various sanctions regimes until the end of the day on April 3, 2026.

He reiterated that this "deliberately short-term measure" would not provide significant financial benefit to the Russian government, as it only authorises transactions involving oil already stranded at sea.

US President Donald Trump had imposed 25 per cent punitive tariffs on India for buying Russian oil, with the administration asserting that Delhi's purchases were helping fuel Russia's war against Ukraine.

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However, last month the United States and India announced they had reached a framework for an interim agreement on trade, and Trump issued an executive order removing the 25 per cent punitive tariffs on India, noting the commitment by New Delhi to stop importing energy from Moscow and increase purchasing American energy products.

A statement from the Treasury Department 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' said that "all transactions prohibited...that are ordinarily incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Russian Federation origin loaded on any vessel, including vessels blocked under the above listed authorities, on or before 12:01 am eastern standard time, March 5, 2026 are authorized through 12:01 a.m. eastern daylight time, April 4, 2026, provided that the delivery or offloading of such crude oil or petroleum products occurs at a port" in India and the purchaser of such crude oil or petroleum products is an entity organised under the laws of India.

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The general licence issued by the Treasury Department also clarified that it does not authorise any other transactions or activities banned under other Executive Orders, including any transaction or activity involving Iran, the Government of Iran, or Iranian-origin goods or services prohibited under the Iranian Transactions and Sanctions Regulations.

Meanwhile, tensions in the Middle East have pushed global oil prices higher, particularly after the prolonged closure of the Strait of Hormuz amid the ongoing war involving the US and Israel against Iran. Brent crude rose to 83.07 dollars per barrel on Friday morning. Despite the global surge, there are currently no plans to increase petrol and diesel prices in India.


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