US gives India green light on Russian oil as Iran conflict disrupts global supply

The United States is allowing India to purchase Russian oil again as the conflict in the Middle East now threatens energy supplies to global markets.

President Trump is promising additional measures to halt hikes in oil prices that followed the launch of the U.S.-Israeli military operation against Iran.

Washington permits India to accept oil from Russia

The U.S. government has issued a temporary license to India to buy Russian oil against the backdrop of an escalating war with Iran that has already bumped prices.

Secretary of the Treasury Scott Bessent confirmed reports that his department has granted New Delhi a 30-day waiver that applies to Russian oil carried by tankers currently at sea.

On Thursday, he took to X to provide the motives for the move, emphasizing its main purpose is to allow oil to keep flowing into the global market.

Bessent noted that Moscow won’t be able to significantly benefit due to the limited timeframe and scope of the U.S. permit.

The latter covers only oil and products already stranded at sea, which were loaded on vessels before or on March 5, as evident from the license published by the Office of Foreign Assets Control (OFAC).

The secretary described it as a “stop-gap measure” meant to “alleviate pressure caused by Iran’s attempt to take global energy hostage.”

Scott Bessent also expressed hope that India, which he called “an essential partner,” will increase oil purchases from the United States as well.

The U.S. and Israel began massive, coordinated strikes against Iran on the last day of February, targeting its political and religious leadership as well as military commanders and sites, with the stated goals of preventing it from acquiring a nuclear weapon and bringing a regime change to Tehran.

The Islamic Republic responded by launching missiles and drones against Israel and U.S. interests, military bases and allies in the Persian Gulf region.

The conflict disrupted maritime traffic in the Strait of Hormuz, which accounts for the transit of approximately 20% of global oil supplies, causing prices of Brent crude to rise above $80 per barrel.

On Thursday, Iran’s Islamic Revolutionary Guard Corps (IRGC) said the strait was closed only to vessels linked to the U.S., Israel, Europe, and their Western allies.

A day earlier, the branch revealed it had hit more than 10 ships, including oil tankers, since the beginning of the hostilities, while permitting the passage of “two ships of friendly countries.”

Trump vows further action to halt oil price rises

Meanwhile, President Donald Trump unveiled the U.S. government is planning to take additional measures to curb growth in oil prices. Speaking at a White House event, he stated:

He highlighted the offering of political risk insurance for oil tankers transiting into the Gulf. Earlier this week, Trump announced that U.S. warships will escort tankers in the Strait of Hormuz if that’s necessary.

Russian oil supplies to India may return to previous levels

India took advantage of Russian oil at discounted rates amid Western sanctions on Moscow over its invasion of Ukraine.

However, it later found itself under U.S. pressure to limit these purchases, with the Trump administration slapping tariffs on Indian imports, eased under a recent trade deal.

Amid the current Middle East crisis, Russian oil deliveries to India may reach 1.5 million barrels per day, an expert quoted by the TASS news agency predicted earlier this week.

According to Maxim Malkov, partner at Kept and head of the consulting firm’s oil and gas services, this means a return to the highest figures registered in the 2024 – 2025 period.

His comments came after Russian Deputy Prime Minister Alexander Novak unveiled that Moscow was seeing an increased Indian demand for its oil.

Sergey Kaufman, analyst at the Russian financial group Finam, added that if the conflict with Iran protracts, the U.S. may allow more Russian oil into India and the global market to avoid price spikes.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.