A move that is likely to impact India, the United States (US) has confirmed that it is not planning to renew a waiver to allow countries procure Russian and Iranian oil, and petroleum products at sea.
In an interview with The Associated Press on Friday, US Treasury Secretary Scott Bessent said the waiver was only given on request of the "vulnerable and poor countries", pointing out that "Russian oil on the water has been largely sucked up".
“Not the Iranians,” Bessent said. “We have the blockade, and there’s no oil coming out.”
“And we think in the next two, three days, they’re going to have to start shuttering production, which will be very bad for their wells,” he added.
The US waiver and the U-turn
In March, the US announced a 30-day waiver for countries to procure Russian oil at sea in view of its conflict with Iran, as the Islamic Republic had closed the Strait of Hormuz that sent crude rates soaring and disrupting global economies. The Hormuz is one of the most critical waterways in the world through which nearly a fifth of global crude passes through.
Bessent had later announced that this waiver will not be extended, but the US made a U-turn on April 17, allowing countries to procure Russian oil loaded onto vessels till May 16. Analysts pointed out that the uncertainty over a peace deal with Iran was the main reason behind this extension.
Impact on India
Washington's move of not renewing the waiver will likely have an impact on New Delhi, which is one of the biggest procurers of Russian oil. As per a report by a European think tank, India bought crude from Russia in March worth over 5.3 billion euros.
"India was the second-highest buyer of Russian fossil fuels in March 2026, importing a total of EUR 5.8 billion of Russian hydrocarbons. Crude oil products constituted 91 per cent of India's purchases, totalling EUR 5.3 billion," a report by Centre for Research on Energy and Clean Air (CREA) stated.
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