Washington DC: The United States on Wednesday (local time) decided not to extend a temporary sanctions waiver that allowed limited purchases of Russian
and Iranian oil. Notably, India is among the countries that are buying oil from these nations, and it could affect adversely New Delhi. The announcement in this regard was made by Treasury Secretary Scott Bessent during a press briefing. "We will not be renewing the general license on Russian oil," Bessent said. Talking about the relief provided by the US by giving a temporary waiver to buy Russian oil, the US Treasury Secretary said that the waiver was for oil that was on water prior to March 11, so that oil should be used. The development came after the US Treasury Department signalled that a similar waiver would also not be extended on Iranian oil. Notably, the waiver was introduced to provide a cushion for global supply disruptions due to the blockade imposed by Iran's Islamic Revolution Guard Corps (IRGC) after the conflict started in the Middle East on February 28. The US' decision jot to extend the waiver on Russian oil would affect India Notably, Russian oil had allowed New Delhi to maintain oil supplies despite Hormuz blockade.
The US had issued a 30-day sanctions waiver to India, permitting it to buy Russian oil despite sanctions imposed over the Ukraine war. However, India said that it did not require anybody's permission to decide its energy sources. A few days later, the US also extended the sanctions waiver to a few other nations. The waiver from sanctions expired on April 11.
Also Read: US Gives India Permission to Buy Russian Oil for 30 Days Amid Iran War & Hormuz Crisis - What It Means?
Due to the closure of the Strait of Hormuz - a key strategic trade route accountable for a fifth of the world's energy trade - was at a standstill. The blockade disrupted oil and gas trade, forcing several nations, especially in Asia and Europe, to raise prices of various related commodities, which arose due to a significant rise in crude oil prices.
India's Oil Purchases Rise During Middle East Conflict:
Amid the oil crisis that arose due to the Middle East war, India's crude oil purchases from Russia more than tripled to 5.3 billion euros in March as volumes doubled and a surge in oil prices pushed up the import bill.
