US Treasury Secretary Scott Besant has announced that Indian refineries are being given a temporary exemption of 30 days to buy Russian oil to maintain global oil supply. Besant posted on social media platform This exemption will exclusively apply to oil loaded on ships that are stranded at sea till March 5, 2026.
stop-gap measures
Besant clarified that this is a stop-gap measure, which will not bring any major financial benefit to the Russian government, as it only covers the delivery of already loaded and stranded oil. Besant further said- This interim arrangement will help in reducing the pressure caused by Iran’s attempts to ‘hostage’ the global energy supply. India is an important partner of the United States, and we fully expect New Delhi to increase its purchases of oil from the United States.
Background and context
The US already maintains a tough policy on Russia under sanctions, but this is limited and short-term relief given prioritizing global energy security in the current geopolitical crisis. This relaxation from the Treasury Department will allow Indian refineries (like IOC, BPCL, HPCL etc.) to continue purchasing stranded Russian crude, which may reduce additional pressure on oil prices and domestic fuel supplies may not be affected. The move is also seen as a step towards strengthening energy cooperation between India and the US, with Washington hoping that India will increase US oil imports.
Following tensions in the Middle East, markets focused their attention particularly on the Strait of Hormuz, a vital sea route that handles about one-fifth of global oil supply. According to reports, Iran has carried out attacks targeting US assets in neighboring countries including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria.
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