US Issues India 30-Day Waiver to Buy Russian Oil Amid Iran Conflict

India has been one of Russia’s largest crude oil importers since the invasion of Ukraine.

Published: 3/5/2026, 11:08:37 PM EST

US Issues India 30-Day Waiver to Buy Russian Oil Amid Iran Conflict — U.S. President Donald Trump and Indian Prime Minister Narendra Modi meet in the Oval Office of the White House on Feb. 13, 2025. (Andrew Harnik/Getty Images)

The United States has granted India a 30-day waiver to continue purchasing Russian crude oil, according to a Treasury Department notice issued on March 5.

The short-term measure will not offer a “significant financial benefit” to Moscow, as the license only “authorizes transactions involving oil already standardized at sea.”

“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” Treasury Secretary Scott Bessent said in a March 5 statement.

For months, the White House had been pressing India to stop buying Russian oil and imposing secondary tariffs on one of the world’s largest economies. The measures were aimed at cutting off a key funding source for Moscow’s war machine, potentially winding down the war in Ukraine.

Since Russia’s invasion of Ukraine, India has been one of the country's biggest petroleum customers. Prior to the outbreak of the war, India’s annual crude imports totaled approximately $2 billion. By 2024, these purchases soared to nearly $53 billion.

The shift comes as global energy markets have been riled due to the conflict in Iran, sending oil prices to their highest levels in about a year.

A barrel of West Texas Intermediate—a benchmark for U.S. oil prices—surged more than 8 percent to settle at $81 on the New York Mercantile Exchange. Brent, the international measure, also advanced 8 percent to more than $85 per barrel.

Retail gasoline prices have also been impacted. The average price for a gallon of gas has jumped about 9 percent, or nearly 27 cents, in the past week to around $3.25, according to the American Automobile Association.

Investors fear that a prolonged conflict in the Middle East could continue to impact the Strait of Hormuz, a key global chokepoint for oil and gas trade. An estimated 20 million barrels of crude and petroleum products traverse the narrow waterway each day.

Tehran has not closed the vital artery, but tankers have stopped transiting the area as Western insurance companies either stopped providing coverage or drastically raised premiums.

Stabilizing Global Oil Markets

To mitigate the sharp increase in crude prices, the administration has unveiled various strategies.

In a March 3 Truth Social post, President Donald Trump directed the U.S. International Development Finance Corp. to begin offering political risk insurance and financial guarantees to facilitate maritime trade moving through the Gulf. Additionally, he said possible naval escorts for tankers would be available, if necessary.

“No matter what, the United States will ensure the free flow of energy to the world. The United States’ economic and military might is the greatest on Earth," Trump said.

The administration did not present a timeline as to when the strait would be safe for commercial shipping again.

Iranian crude oil tanker, Sevda, sails near Bandar Asaluyeh, Iran, on Jan. 27, 2026. (AFP via Getty Images) — Iranian crude oil tanker, Sevda, sails near Bandar Asaluyeh, Iran, on Jan. 27, 2026. AFP via Getty Images

“I don’t want to commit to a timeline, but certainly it’s something that is being calculated actively by both the Department of War and the Department of Energy,” White House press secretary Karoline Leavitt told reporters during a press briefing on March 4.

When asked about reports speculating the administration could intervene in the oil futures market, Interior Secretary Doug Burgum was coy about what other actions U.S. officials could take.

“Everything is being considered, and I think there’s a series of ideas,” Burgum told Bloomberg.

During the Inter Miami CF event, Trump teased that additional measures would be coming.

“Further action to reduce pressure on oil is imminent, and the oil seems to have pretty much stabilized,” the president said. “We had it very low, but I had to take this little detour if it’s OK with everybody.”

After the latest announcement, U.S. crude prices fell almost 3 percent to below $79 a barrel, while Brent declined more than 2 percent to around $83 per barrel during after-hours trading.

From The Epoch Times