US ends sanctions waivers on Russian, Iranian oil:What does it mean for India amid Hormuz blockade

The United States has decided not to extend sanctions waivers that allowed countries to purchase Russian and Iranian crude, signalling a return to stricter enforcement after a brief period aimed at easing war-driven supply disruptions. Speaking at a press briefing, US Treasury Secretary Scott Bessent said Washington would allow the waiver on Iranian oil shipments at sea to expire this week, after a similar waiver for Russian oil lapsed over the weekend. “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,” Bessent said, according to Reuters. India among key beneficiaries of waivers India emerged as a major beneficiary of the temporary relaxations, which had drawn criticism from US lawmakers for easing financial pressure on Moscow and Tehran. According to reports citing government officials, Indian refiners placed orders for roughly 30 million barrels of Russian crude after the waiver came into effect. The waivers, introduced in March, allowed limited transactions involving oil already loaded onto vessels before specified deadlines, helping stabilise global markets amid supply concerns linked to the conflict. Short-term measure to ease supply shocks The Trump administration had framed the waivers as a stopgap measure to ease pressure on global energy markets. In a statement issued on March 12, Bessent said the 30-day waiver for Russian oil was intended to ensure continued supply without significantly benefiting Moscow. “To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea,” he said. He also described India as an “essential partner” and expressed expectations that New Delhi would increase purchases of US crude. Timeline of expiring waivers The waivers were designed as narrowly defined, time-bound relaxations: A US licence issued in March allowed delivery of Russian crude loaded before March 12, with the waiver expiring on April 11. A similar waiver for Iranian oil, issued on March 20, permitted the sale of an estimated 140 million barrels loaded before the cut-off date and is set to expire on April 19. The measures were introduced after tensions around the Strait of Hormuz, a critical route carrying about 20% of global crude and liquefied natural gas, raised fears of supply disruptions. Return to ‘maximum pressure’ on Iran The decision not to renew the waivers aligns with Washington’s broader “maximum pressure” approach towards Iran amid ongoing geopolitical tensions. Ending the waivers is expected to tighten global supply conditions and increase scrutiny of buyers engaging with sanctioned producers. Impact on India’s crude sourcing The temporary relief had enabled Indian refiners to secure additional supplies during a volatile period in global oil markets. Major refiners, including Reliance, had initially reduced purchases from Russian companies such as Rosneft and Lukoil amid US pressure earlier this year, before ramping up imports again during the waiver window. India also received Iranian crude shipments during the period, marking its first such imports in nearly seven years. At least two supertankers delivered cargoes to Indian ports. Historically, Iran was a significant supplier to India, with its crude accounting for as much as 11.5% of total imports at its peak. Imports ceased in May 2019 following tighter US sanctions, with refiners shifting to alternative sources in the Middle East, the US and elsewhere. During the waiver period, Indian refiners moved quickly to secure supplies before deadlines, including importing nearly 4 million barrels of Iranian crude. Global implications With the waivers now ending, buyers will have to reassess sourcing strategies amid renewed sanctions enforcement. The move is likely to add pressure to already tight energy markets, potentially influencing global crude prices and trade flows in the coming weeks.