In a rare move to stabilise global energy markets the United States has temporarily eased sanctions to allow the sale of Russian crude oil currently stranded at sea to India under a 30‑day licence issued by the Treasury Department’s Office of Foreign Assets Control.
The licence which authorises deliveries of Russian‑origin crude and petroleum products loaded onto vessels as of March 5 and valid through April 3 is aimed at keeping oil flowing into a world market strained by the Iran war and disruptions to the Strait of Hormuz a key route for global energy supplies.
Treasury Secretary Scott Bessent said the waiver is designed to ensure supplies keep moving without providing “significant financial benefit to the Russian government,” since it only covers oil already on the water. He added that the measure should “alleviate pressure caused by Iran’s attempt to take global energy hostage,” even as India has pledged to reduce Russian oil purchases under its trade deal with Washington.
The temporary authorisation allows Indian refiners to bring in millions of barrels of Russian crude offering a short‑term buffer against tightening supplies as Persian Gulf tensions push oil prices higher and disrupt shipments. U.S. officials also said they expect New Delhi to increasingly import U.S. oil over time even as the waiver provides immediate relief for one of Asia’s largest energy consumers.
In the broader context of the Middle East crisis and global energy volatility Washington’s decision reflects both pragmatic energy diplomacy and geopolitical balancing as oil markets grapple with reduced flows and heightened risk.
