Amid the escalating war between Israel, Iran, and the U.S., the broader energy market is expected to witness significant jolts. Iran claims to have closed the Strait of Hormuz, which facilitates roughly 20% of the world’s oil and gas supply. Considering the circumstances, the U.S. has permitted India to buy Russian oil to ease the demand, but with a few conditions.
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India Can Purchase Russian Oil Only Until April 4
On Friday, March 6, 2026, the US Treasury Secretary Scott Bessent announced on X that the United States is granting a temporary 30-day waiver to India to buy Russian oil. It is issued as General License 133 by the Office of Foreign Assets Control (OFAC) and is subject to strict parameters.
The timeline for the waiver already began on March 5 and would end on April 4 at 12:01 a.m. Washington time. Notably, the U.S. has come to this decision amid the ongoing war in the Middle East, which suggests the possibility of a spike in energy prices.
Already, Iran has announced the closure of the Strait of Hormuz, which is situated between Iran and Oman, and is responsible for the facilitation of the 20% supply of the energy market.
Besides, although the U.S. dislikes India buying the Russian oil, and India has reduced its purchase from Russia (post-tariff attack), Scott claimed that this temporary buy would not financially benefit Russia much, as it only authorizes transactions involving oil already stranded at sea.
India can only purchase Russian Oil Stranded at Sea
Although Washington permits Indian refineries to purchase Russian oil, the waiver is only applicable to the Russian-origin crude and petroleum products that are already loaded and are at sea. It means India can only buy the products that were loaded on or before March 5, 2026.
Interestingly, Bloomberg recently reported that 9.5 million barrels of Russian oil are sitting in Asian waters as of last week.
By this decision, the United States hopes to stabilize the supply of oil and prevent sudden price spikes. Some even call it an anticipated move, since the U.S. has attacked Venezuela and aims to take over its colossal oil resources.
How Much Oil is Left in India?
The waiver has come at a critical point, as Reuters reported India only holds enough oil that can cover the 25 days of the country’s demand. And with the closure of the Strait of Hormuz, this could have been a difficult time for the country, as India is one of the world’s largest crude importers. The closure would impact nearly 40% of India’s specific imports.
The diverse South Asian country has been buying discounted Russian oil since Russia faced Western sanctions over the Ukraine war in 2022. However, it had to cut back on its purchases due to Trump’s Reciprocal Tariff Act.
On the other hand, Russia still wishes to have business with India. On Thursday itself, Russian Ambassador Denis Alipov said, “We have been open to supplying crude oil to India,” amid spiraling oil demand due to the Middle East conflict.
Indian State Refiners Bought 20 million Barrels of Russian oil
According to India Today reports, state-run refineries like Indian Oil Corporation, Hindustan Petroleum Corporation, and others are already in talks to purchase the Russian crude oil stranded at sea. They also reported that Indian state refiners have already bought about 20 million barrels of Russian oil from traders.
“Indian refiners are back in the market nowadays; more than prices, availability of molecules is the issue,” per the India Today sources.
However, it’s way costlier this time due to the Israel-Iran war. Reportedly, the Russian Urals crude is now selling at a premium price of premium $4–$5 per barrel over Brent, which was $13 cheaper just weeks ago.