The US government has temporarily eased sanctions to allow India to buy Russian oil currently stranded at sea, amid escalating tensions in the Middle East (US Treasury Department license, 05/03/2026).
The US Treasury Department Secretary stated the one-month waiver was a "deliberate short-term measure" to allow oil to keep flowing in the global market, as millions of barrels of oil and gas are stuck near the Strait of Hormuz through which nearly half of India's crude oil and gas imports transits.
The United States sanctioned Russian oil following Moscow's invasion of Ukraine, forcing buyers to seek alternatives, with the United States putting particular pressure on India, a major buyer of Russian energy, to stop buying Russian oil.
The halt in supplies has triggered fears of an impending energy crisis in India, which reportedly has crude oil and gas stocks to last for about 25 days.
India is the world’s third largest importer of crude oil, reaching its highest level in 2024 at 241 Mt (+2.8%/year since 2010). In 2024, crude oil imports represented around 90% of the country’s oil needs.