New Delhi: The United States has announced that it will not extend the temporary sanctions waiver that allowed countries to purchase Russian and Iranian oil, signaling a return to stricter enforcement of economic measures.
The waiver, which was granted for one month to stabilise global oil markets during the ongoing Middle East crisis, applied to oil shipments that were already in transit before March 11. With its expiry, countries continuing to buy oil from Russia and Iran could face punitive action.
US Treasury Secretary Scott Bessent has warned that secondary sanctions may be imposed not only on the exporting countries but also on buyers and financial institutions involved in such transactions.
During the waiver period, a significant volume of oil—estimated at around 140 million barrels—entered global markets, helping ease supply concerns.
India, one of the largest importers of crude oil, had taken advantage of the waiver to purchase both Russian and Iranian oil. Reports indicate that Indian refiners imported millions of barrels during this period, including shipments from Iran for the first time since 2019.
However, with the waiver ending and the threat of sanctions looming, India is unlikely to continue such purchases. Experts suggest that India may now turn to alternative suppliers, including the United States and African nations, to meet its energy needs.
The move could increase import costs for India, as discounted Russian crude had become a major component of its energy strategy in recent years.
The decision comes at a time when global energy markets are already under pressure due to ongoing geopolitical tensions and disruptions in key oil supply routes. Analysts warn that stricter sanctions could further tighten supply and push up prices worldwide.
Diplomatic developments, including possible ceasefire talks between the US and Iran, could influence future policy decisions. Until then, uncertainty is expected to persist in global oil markets.