In a surprise move, the US has said that it will not renew the sanctions waiver on Russian and Iranian crude oil, a development that could further strain India’s efforts to secure supplies.
“We will not be renewing the general licence on Russian oil, and we will not be renewing the general licence on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used,” Treasury Secretary Scott Bessent said on Wednesday.
The US had issued the 30-day waiver allowing the delivery and sale of Russian crude oil loaded before March 12, with the waiver expiring on April 11. The US Treasury Department later issued a similar waiver for Iranian oil.
Washington allowed the sanctions waiver for Iranian and Russian crude oil in a bid to tame the rising prices as the conflict in West Asia intensified with attacks on oil and gas infrastructure. The price of physical crude oil has already hit record high near $150 a barrel.
India had utilised the opportunity to purchase significant quantities of Russian crude oil. For instance, the world’s third largest importer bought around 1.98 million barrels per day (mb/d) of oil in March 2026, up from roughly 1 mb/d in February.
According to Finland-based Centre for Research on Energy and Clean Air (CREA), Russia is heavily reliant on Asian markets to sell its oil with 90 per cent of its total exports of crude oil delivered to China and India in the first quarter of 2026.
India was the second-highest buyer of Russian fossil fuels in March 2026, importing a total of Euro 5.8 billion of Russian hydrocarbons. Crude oil products constituted 91 per cent of India’s purchases, totalling Euro 5.3 billion. Coal (Euro 337 million) and oil products (Euro 178.5 million) constituted the remainder of their monthly imports, CREA said earlier this week.
The latest US move will further stoke tensions pushing up crude oil prices. Analysts fear that the conflict in West Asia seems far from over and given the fears of further supply disruptions, stopping Russian and Iranian crude oil will further rile the markets, pushing prices up further.
Published on April 16, 2026