Relief for India amidst Iran war; US grants temporary waiver to buy Russian oil

NEW DELHI: The US has granted Indian refiners a 30-day waiver to purchase Russian oil. This was announced by US Treasury Secretary Scott Besant. The new announcement is a relief for India amid the increasing tensions in the Middle East.

‘President Trump's energy agenda has pushed oil and gas production to record highs. To keep oil flowing to global markets, the Treasury Department is temporarily granting a 30-day waiver to allow Indian refiners to buy Russian oil. The waiver will only apply to transactions involving oil that is stranded at sea. The move will not provide significant economic benefits to the Russian government.

India is an essential partner of the United States, and we fully expect India to increase its purchases of US oil. This temporary measure will help ease the pressure caused by Iran's attempts to hijack global energy supplies,’ the US Treasury Secretary said in a social media post.

India's imports of Russian crude oil fell to 1.1 million barrels per day in January, the lowest since November 2022. India's share of total oil imports fell to 21.2 percent to avoid US tariffs, according to Indian industry data. This share rose to nearly 30 percent in February.

Oil prices are rising globally as a result of the closure of the Strait of Hormuz following the escalation of the Iran war. Brent crude oil rose to $83.07 a barrel this morning. However, officials have clarified that there is no possibility of a hike in petrol and diesel prices in India.