US Allows India To Purchase Russian Oil For 30 Days Amid US-Israel-Iran War
The U.S. Treasury Department issued a temporary 30-day waiver on Friday to allow Indian refiners to purchase Russian oil. U.S. Treasury Secretary Scott Bessent said in a statement via X on Friday.
As per Besset, the move is aimed at enabling oil to keep flowing into the global market amid the war in West Asia, which has disrupted oil supply.
Notably, Iran has announced the blockade of the Strait of Hormuz amid the ongoing US-Israel-Iran war warning, with attacks on any vessel attempting to transit the waterway.
Located between Oman and Iran, the strait functions as a vital artery for the global oil trade. Almost 31 percent of all seaborne crude flows from the strait.
A prolonged closure of the strait likely leads to a surge in oil prices, reaching $100 per barrel.
Nearly 20 percent of the global liquified natural gas exports, coming primarily from Qatar, are also at risk. Qatar, one of the world’s largest providers of LNG, halted production on Monday after Iranian drone attacks on its facilities.
India faces the largest combined exposure in the region. Qatar and UAE account for 53 percent of India’s LNG imports. Also 60 percent of India’s oil imports come from the Middle East. A sustained blockade would amplify both energy import costs and current account pressures.
Oil Minister Hardeep Singh Puri said that India has sufficient crude and fuel stocks to meet demand for about 74 days. A supply disruption of this scale could compel India to diversify its sourcing.
Russia has remained the largest supplier of crude oil in the past however, the imports to India fell to its lowest in January-February amid the US pressure on India to stop the purchases.
