US to stop oil waivers amid rising global tensions
The United States has said it will not renew sanctions waivers that allowed countries, including India, to purchase certain Russian and Iranian oil without facing penalties.
US Treasury Secretary Scott Bessent confirmed the decision, stating that the temporary licences covering oil shipments loaded before mid-March will not be extended.
“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.
Waivers introduced amid energy disruptions
The waivers were issued as a short-term measure to stabilise global energy supplies during disruptions linked to tensions around the Strait of Hormuz.
They allowed limited transactions involving oil already in transit to reach global markets and ease price pressures.
The waiver for Russian oil shipments expired on April 11, while a similar relaxation for Iranian oil is set to expire on April 19.
Shift in US policy
The move signals a shift away from earlier efforts under the Donald Trump administration to ease supply constraints and contain rising global oil prices.
It also aligns with Washington’s broader “maximum pressure” approach toward Iran amid ongoing regional tensions.
Implications for India
India had been among the key beneficiaries of these waivers, using them to secure additional crude supplies during a period of volatility in global markets.
Indian refiners had reportedly increased purchases of Russian oil during the waiver period, while some Iranian crude shipments also reached Indian ports after a long gap.
With the waivers ending, refiners may need to reassess sourcing strategies as global supply conditions tighten.
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