US to let India buy millions of barrels of Russian oil from vessels stranded by Iran war

The United States has granted India a 30-day dispensation allowing it to buy “crude oil and petroleum products” from sanctioned Russian vessels stranded by the war in Iran, according to a press release issued by the US Treasury Department on Friday.

In a post on X, US Treasury Secretary Scott Bessent said that the temporary waiver would “not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea.”

Indian refiners have been hit hard by the renewed hostilities between Iran and the US, which have caused almost all shipping to grind to a halt around the Strait of Hormuz. Almost half of Indian oil imports normally pass through the strait, the narrow passage connecting the Persian Gulf to the Arabian Sea.

The move by Washington is intended to relieve India’s acute short-term need for crude oil, after the country agreed to US demands in February that it cease all oil imports from Russia. US President Donald Trump had previously slapped India with a 25% tariff “surcharge” for importing Russian oil.

Russia’s Deputy Prime Minister Alexander Novak said on Wednesday that Russia was ready to increase the volume of oil it supplied to India and China, adding: “Our oil is always available. If they want to buy it, we will sell it.”