Breaking News: Trump government gave a big blow to India, now Russia’s ‘cheap oil’ will be stopped

A big and worrying news has emerged from the global forum for India’s energy security and economy. Amidst the Iran and Russia-Ukraine conflict, America has now completely put brakes on the relief of ‘cheap oil’ that India is getting. This tough decision of the US Treasury Department has created panic in the Indian market.

The era of relaxation is over: What was the American plan?

The entire matter is related to the US-Iran war that started in late February, which created an uproar in the global oil market. Then the prices of crude oil had crossed $100 per barrel. To stabilize the market, the Trump administration, as a temporary policy, had given India a special exemption of 30 days to buy Russian oil. This concession was only for those consignments which were loaded on ships before March 11. This exemption for Russia is going to end on 11 April 2026, while the relief given for Iran is also going to end on 19 April. Now America says that the oil that was in the sea has been used and now no new license will be issued.

Big economic shock for India

India has been the biggest beneficiary of this American exemption. This exemption came as a lifeline when big refineries like Reliance had shunned Russian suppliers due to fear of sanctions. According to reports, India had placed large orders for about 30 million barrels of oil from Russia during this period. India had strongly appealed to America to extend these concessions, but the US Treasury has rejected it. Now the biggest challenge before India is how it will meet its oil needs, because the oil from Russia and Iran was much cheaper than the market rate.

American politics and pressure from Democrats

America’s internal politics also have a big role behind this decision of the Trump administration. The opposition Democratic Party was continuously alleging that Russia is getting so much money through this exemption that it is further strengthening its war machinery against Ukraine. Leaders like Senator Richard Blumenthal argued that on the one hand Russia and Iran are harming American interests, on the other hand it is suicidal to give them economic relief. In view of this pressure and strategic security, Treasury Secretary Scott Besant has now adopted a tough stance and has clearly refused to extend the deadline.

What next: New fear of inflation?

The closure of cheap oil from Russia and Iran directly means that India’s dependence on Gulf countries and the American market will increase. This oil will not only be expensive but its supply may also be uncertain. This will have a direct impact on the pockets of the common man, because there is every possibility of a rise in the prices of petrol, diesel and LPG. Now the Indian government will have to work quickly on alternative payment gateways like ‘Rupee-Ruble’ to continue trade with Russia, otherwise a new wave of inflation may engulf the country.