The United States government has temporarily eased sanctions to allow India to purchase Russian oil that is currently stranded at sea, amid rising tensions in the Middle East. This decision comes as a strategic move to maintain the flow of oil in the global market, despite the complex geopolitical challenges facing the region.
Treasury Secretary Scott Bessent announced a 30-day waiver on Russian oil sanctions, describing it as a "deliberate short-term measure" aimed at preventing further disruption to global energy supplies. This waiver specifically permits transactions involving Russian oil that is already stuck at sea, rather than authorizing new purchases, thereby limiting any significant financial benefit to Russia. Bessent emphasized that the measure is intended to alleviate pressure caused by Iran’s recent threats to disrupt maritime traffic through the Strait of Hormuz, a critical chokepoint in the Gulf region.
The Strait of Hormuz is a narrow but vital passage through which nearly half of India’s crude oil and gas imports transit. Due to escalating conflicts in the Middle East—particularly following the outbreak of war involving Iran, the US, and Israel—Iran has threatened to attack vessels attempting to navigate this route. This has led to millions of barrels of oil and gas being stranded near the strait, raising concerns about a potential energy crisis in India and beyond.
India heavily depends on energy imports, with about 90% of its crude oil coming from abroad. Roughly half of these imports—amounting to between 2.5 and 2.7 million barrels per day—pass through the Strait of Hormuz. Major suppliers include Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait. Any disruption in the flow of energy through this vital corridor could have serious consequences for India, potentially triggering inflation and exacerbating the country’s fiscal deficit, experts warn.
The US sanctions on Russian oil were initially imposed following Moscow’s invasion of Ukraine. These measures were designed to cut off revenue streams that could fund the war effort, pushing global buyers of Russian oil to seek alternative sources. India, being one of the largest buyers of Russian energy, has been under significant pressure from Washington to halt its purchases of Russian crude. US policy makers argue that continuing to buy Russian oil indirectly supports Russia’s military activities in Ukraine.
However, India has consistently defended its energy procurement strategy, maintaining that it must secure reliable and affordable energy supplies to meet the needs of its vast population. The Indian government insists on its right to conduct trade with its partners without external interference, emphasizing energy security as a national priority.
The recent waiver granted by the US represents a notable shift in its approach to India’s energy imports from Russia. Previously, the US had taken a much harder stance against India’s Russian oil purchases. Former President Donald Trump, for example, imposed tariffs of up to 50% on Indian goods, including a 25% levy specifically targeting oil imports from Russia. Trump justified these tariffs by alleging that India’s purchases were bolstering Russia’s war capabilities.
Despite these pressures, India has reportedly begun to reduce its reliance on Russian crude since late 2025, simultaneously increasing its oil imports from the United States. In February, Trump announced a trade deal with India that reduced tariffs to 18%, suggesting a warming of economic ties. He also claimed that Indian Prime Minister Narendra Modi had agreed to stop buying Russian oil and to increase purchases from the US and potentially Venezuela. However, India has never officially confirmed a reduction in Russian oil imports, maintaining that its trade relations are sovereign decisions not dictated by other nations.
The current waiver, while temporary, could have a significant impact on the availability of oil supplies for India. According to Sumit Ritolia, lead research analyst at Kpler, approximately 145 million barrels of Russian crude currently stranded at sea could be redirected to Indian ports if commercial agreements are reached. Nevertheless, Ritolia cautions that this waiver does not fundamentally alter India’s structural dependence on Middle Eastern energy supplies.
The energy situation in India is further complicated by disruptions in natural gas supplies. On Wednesday, Petronet LNG, India’s leading gas importer, issued a force majeure notice to its supplier QatarEnergy and local buyers after LNG tankers were unable to reach the loading terminal at Ras Laffan in Doha. This development underscores the vulnerability of India’s energy infrastructure amid regional instability. Additionally, the Gas Authority of India Ltd (GAIL) and Indian Oil Corporation (IOC) have already started reducing gas supplies to industrial customers, signaling the severity of the supply crunch.
India