U.S. grants India 30-day waiver for Russian oil amid global supply fears

WEB DESK: In a significant shift in energy policy, U.S. Treasury Secretary Scott Bessent has announced a temporary 30-day waiver allowing India to resume purchases of Russian crude oil. The move is designed to shore up the global energy market as tensions in the Middle East threaten to disrupt traditional supply lines.

According to FOX News, Bessent noted that millions of barrels of Russian crude currently sitting at sea could be deployed immediately to prevent a sharp spike in international fuel prices.

Strategic necessity and market stability

The Treasury Secretary emphasised that the decision was born out of economic pragmatism rather than a softening of geopolitical stances. By allowing Indian refineries to tap into Russian reserves, Washington aims to inject immediate liquidity into a tightening market.

“The purpose of allowing India is to stabilise oil prices and ensure smooth supply lines,” Bessent explained, acknowledging that the global economy cannot currently afford a prolonged shortage. He further hinted that the U.S. might consider broader relief, suggesting that Washington may eventually lift certain sanctions on Russian oil to meet the growing global deficit.

India’s compliance and Middle East pressures

The waiver also serves as a diplomatic nod to New Delhi’s cooperation with previous American requests. Bessent praised India as a “good follower,” noting that the nation had significantly reduced its intake of Russian energy at the behest of the U.S. in recent months. However, with the Middle East teetering on the edge of further conflict, the pressure on global supply has reached a critical juncture. This 30-day window is viewed as a vital safety valve, rewarding India’s prior compliance while ensuring that the “necessity” of global energy security takes precedence over the isolation of Moscow.