New Delhi, April 16 -- The United States has announced it will not extend sanctions waivers that had temporarily allowed countries, including India, to continue purchasing Russian and Iranian oil, marking a shift in Washington's approach as global energy markets remain volatile amid ongoing geopolitical tensions.
Speaking at the White House on Wednesday, US Treasury Secretary Scott Bessent confirmed that the exemptions had run their course. "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," he said. The decision effectively ends a short-term policy introduced to ease supply disruptions and contain rising energy prices during escalating conflict in West Asia.
The waivers were initially designed to allow oil already loaded onto tankers before specific deadlines to reach buyers. After tensions around the Strait of Hormuz disrupted shipping routes in March, Washington issued a 30-day licence permitting delivery of Russian crude loaded before March 12. That exemption expired on April 11. A similar waiver for Iranian oil, issued on March 20, allowed about 140 million barrels to enter global markets and is due to lapse on April 19.
These measures came at a time when roughly 20 per cent of global crude and liquefied natural gas flows through the Strait of Hormuz, a critical chokepoint affected by the conflict. US officials had framed the waivers as a temporary step to stabilise supplies and curb price spikes. Energy Secretary Chris Wright earlier described the move as a "short-term, pragmatic effort" to reduce fears of shortages, adding it did not signal a broader shift in US policy toward Russia.
India emerged as a key beneficiary during the waiver period. Reports indicate Indian refiners ordered around 30 million barrels of Russian oil under the exemptions, helping offset supply uncertainties. Data from the Centre for Research on Energy and Clean Air showed India's imports of Russian fossil fuels surged in March 2026 to about $6.3 billion, making it the second-largest buyer globally. Crude oil accounted for 91 per cent of that total at roughly $5.7 billion, with coal imports at about $365 million and oil products at nearly $194 million. This marked a sharp rise from approximately $1.9 billion in February, when India ranked third.
Indian refiners, including major private players, had briefly reduced purchases from Russian suppliers such as Rosneft and Lukoil earlier this year under US pressure before increasing procurement again during the waiver window. The period also saw rare shipments of Iranian crude reaching Indian ports for the first time in nearly seven years, reflecting New Delhi's efforts to diversify supply amid disruptions.
Historically, Iran was a significant supplier to India, at one point accounting for 11.5 per cent of total imports before sanctions tightened in 2018 and halted purchases by May 2019.
The waiver policy drew criticism within the United States. Senator Richard Blumenthal argued against any extension, stating on April 10 that the measure had provided substantial financial support to Russia's war efforts. Senate Majority Leader Chuck Schumer and other lawmakers also raised concerns, warning that easing restrictions risked undermining sanctions aimed at Moscow.
With the waivers now ending, Washington is expected to intensify its "maximum pressure" strategy on Iran while maintaining strict measures against Russia, potentially tightening global oil supply conditions once again.
Published by HT Digital Content Services with permission from Millennium Post.