The United States has temporarily relaxed sanctions to allow India to purchase Russian oil currently stranded at sea as tensions in the Middle East disrupt global energy supply routes. The move comes as the ongoing conflict involving Iran threatens shipping through the Strait of Hormuz, a key transit point for global oil and gas shipments.
U.S. Treasury Secretary Scott Bessent announced a 30 day waiver that will permit the sale of Russian oil already stuck in transit. He described the measure as a short term step designed to keep oil moving through global markets and reduce pressure on energy supplies during the crisis. Officials say the waiver applies only to oil that is already on ships and does not authorize new Russian energy transactions.
The Strait of Hormuz remains a central concern for global energy markets. Nearly half of India’s crude oil and gas imports pass through the narrow waterway. Since the conflict began, Iran has warned that vessels attempting to move through the route could face attacks, raising fears of a major disruption to international energy trade.
Energy analysts say millions of barrels of oil are currently trapped near the region as shipping companies assess the risks. India, which imports about 90 percent of its crude oil, relies heavily on supplies that move through the Gulf. Roughly half of its imports, estimated at about 2.5 to 2.7 million barrels per day, normally pass through the Strait of Hormuz from producers such as Iraq, Saudi Arabia, the United Arab Emirates and Kuwait.
The disruption has already affected energy shipments to India. Petronet LNG, the country’s largest gas importer, issued a force majeure notice after its tankers were unable to reach loading terminals in Qatar. Indian companies including the Gas Authority of India Ltd and Indian Oil Corporation have reportedly begun cutting gas supplies to some industrial customers as a precaution.
Analysts say the waiver could allow about 145 million barrels of Russian crude currently in transit to be redirected toward Indian ports if commercial agreements are reached. However, experts caution that the temporary policy does not resolve India’s broader reliance on Middle Eastern energy supplies.
The decision marks a notable shift in Washington’s stance toward India’s Russian oil purchases. Following Russia’s invasion of Ukraine, the United States imposed sanctions on Russian energy exports and pressured major buyers, including India, to reduce purchases. Despite that pressure, Russian crude still accounts for roughly 20 percent of India’s oil imports.
India has consistently defended its purchases of Russian oil, arguing that it must secure reliable energy supplies for its large population and maintain the freedom to trade with global partners. Although reports suggested India reduced some Russian imports in late 2025 while increasing purchases from the United States, Indian officials have maintained that their energy policies will not be dictated by external governments.
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