Washington: The United States has refused to extend sanctions relief that allowed countries like India to import oil from Russia and Iran, a decision that is poised to trigger fresh turmoil in global energy markets and deepen India’s strategic vulnerability.
The waivers, introduced under Donald Trump, had temporarily allowed the clearance of oil shipments already at sea—many of which had been delayed due to disruptions in the crucial Strait of Hormuz. However, with the deadlines now expiring, Washington has decisively shut down these exceptions.
US Treasury Secretary Scott Bessent confirmed that the general licenses covering Russian and Iranian oil trade will not be renewed, stating that the relief measures had served their purpose of stabilising global prices. The exemption for Russian crude expired on April 11, while Iran-related waivers will lapse on April 19, effectively ending all sanctioned flexibility.
India, one of the biggest beneficiaries of discounted Russian oil, is expected to bear the brunt. During the waiver period, Indian refiners ordered nearly 30 million barrels of Russian crude. Companies such as Reliance Industries had resumed imports after briefly scaling back earlier this year, only to now face renewed disruption.
The situation is further aggravated by India’s tentative return to Iranian oil after a seven-year gap. Recent arrivals of Iranian crude at Indian ports had hinted at a revival of a once-critical supply line that previously accounted for over 11% of imports. That window now appears to be closing rapidly as the U.S. intensifies pressure on Tehran.
Meanwhile, domestic criticism in the U.S. has added fuel to the decision. Lawmakers, including Senator Richard Blumenthal, argued that such waivers indirectly supported Vladimir Putin’s war efforts.
With sanctions tightening, India faces a looming energy crunch, rising costs, and shrinking geopolitical room to manoeuvre.