US Grants India 30-Day Waiver to Buy Russian Oil

• The United States granted India a 30-day waiver to buy Russian crude amid global supply disruptions
• Oil prices surged due to the Iran conflict, with Brent near $85 and WTI around $81 per barrel.
• India may have bought 6–8 million barrels of Russian oil and gas reserves covering about 45 days of demand

The United States has granted India a 30-day waiver allowing it to purchase Russian crude oil, after previously imposing a 25% “penalty” tariff for such imports. The temporary exemption exists because the ongoing Iran war currently disrupts global energy supplies and causes oil prices to increase.

The US waiver India Russian oil move highlights rising India Russian crude imports amid the Iran war energy supply crisis, triggering global oil market disruption while reinforcing India energy security efforts.

Oil markets reacted strongly to the geopolitical tensions. West Texas Intermediate (WTI) crude jumped 8.51% to close at $81.01 per barrel, its biggest single-day gain since May 2020, while global benchmark Brent crude rose 4.93% to $85.41 per barrel. The next day saw prices decrease, with Brent trading at approximately $84.42 and WTI at $79.92 per barrel.

The waiver will reduce supply problems because India ranks as the world’s fourth-largest refiner while being the fifth-largest petroleum product exporter and third-largest crude oil importer.

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New Delhi has started to use Middle Eastern oil supplies as replacements for Russian oil supplies, but Gulf conflict disruptions have compelled the country to restore energy imports from Moscow.

The market data shows that Indian refiners have recently requested Russian crude shipments. Kpler analyst Muyu Xu reports that India has made Russian oil purchases between six and eight million barrels during the last few days.

The short-term waiver, which U.S. Treasury Secretary Scott Bessant described as mainly permitting the sale of cargoes which currently remain stranded at sea, will provide Russia with minimal financial advantages.

India currently possesses approximately 100 million barrels of crude oil, which can sustain its demand for 45 days. Indian refineries will remain secure for three to four weeks, but the country will face energy security challenges because of extended Middle Eastern supply disruptions.