U.S. Grants India 30-Day Waiver to Buy Russian Oil Amid Iran Conflict Disruptions

The United States has granted India a 30-day waiver allowing it to purchase Russian crude oil as the war involving Iran raises concerns over global oil supply disruptions.

Washington stated the temporary measure aims to stabilize energy markets amid escalating tensions in the Middle East threatening global oil flows. U.S. officials noted the waiver would enable India, the world's third-largest oil importer, to access Russian crude while markets adjust to the conflict-related disruptions.

U.S. Treasury Secretary Scott Bessent said the measure would permit transactions for oil already stranded at sea and was unlikely to significantly benefit Russia financially.

Oil prices surged due to supply fears, with West Texas Intermediate crude rising more than 8% to $81 per barrel and Brent crude climbing nearly 5% to about $85. U.S. President Donald Trump said Washington was taking steps to curb rising prices, including offering political risk insurance for tankers transiting the Gulf.

Energy markets have been affected by the ongoing conflict involving Iran, Israel, and the United States, which has disrupted shipping routes and heightened fears of supply shortages. Shipping traffic through the Strait of Hormuz, a key route for roughly 20% of global oil flows, has slowed significantly following Iranian warnings and rising insurance costs for vessels.

Analysts indicated the disruptions could prompt India to increase purchases of Russian crude as alternative supplies from Gulf producers remain uncertain. India currently has access to about 100 million barrels of crude reserves, sufficient to meet demand for around 45 days.

Experts warned that prolonged disruptions in Middle Eastern supplies beyond several weeks could pressure Indian refiners to secure alternative oil sources. The waiver underscores growing global concerns over energy security amid the expanding Middle East conflict threatening supply routes and driving oil market volatility.