Indians Have Been Very Good Actors: US On Russian Oil Waiver To New Delhi

US President Donald Trump's close aide on Friday said that his administration has granted temporary permission to India to buy Russian oil that is on ships already floating on waterways with a view to easing supplies around the world amid the West Asia conflict.

"The world is very well supplied in oil. Yesterday, the Treasury (Department) agreed to let our allies in India start buying Russian oil that was already on the water," PTI quoted US Treasury Secretary Scott Bessent as telling in an interview to Fox Business on Friday.

This decision comes amid mounting tensions in West Asia, where missile strikes and Iran's blockade of the Strait of Hormuz have disrupted oil flows through one of the world's most critical maritime chokepoints.

"The Indians had been very good actors. We had asked them to stop buying sanctioned Russian oil this fall. They did. They were going to substitute it with US oil. But to ease the temporary gap of oil around the world, we have given them permission to accept the Russian oil. We may unsanction other Russian oil," he added.

"By unsanctioning them, Treasury can create supply," Bessent explained, adding that the US will continue to announce measures aimed at easing market pressures during the ongoing conflict.

US Energy Secretary Chris Wright echoed this sentiment, stressing that while long‑term oil supplies remain abundant, short‑term constraints require immediate action. He pointed out that floating storage around Southern Asia-much of it destined for China-has created a backlog.

By encouraging India to absorb this oil, refine it, and release it into the market, Washington hopes to reduce competition among global refiners and keep prices in check. Wright described the approach as a "practical way to get supply flowing," underscoring the urgency of stabilizing markets in the face of geopolitical turmoil.

India, the largest buyer of Russian crude since Moscow's invasion of Ukraine, had begun cutting purchases earlier this year after Washington imposed a 25% tariff. That tariff was later reduced, and both countries have since signed an interim trade agreement, signalling closer economic ties. By granting India temporary access to Russian oil, Washington not only alleviates immediate supply pressures but also strengthens its partnership with New Delhi, which it has termed an "essential partner."

Global energy markets are under strain due to Iran's aggressive posture in the Gulf, particularly its blockade of the Strait of Hormuz, which handles about 20% of the world's oil supply. The US sees this as an attempt by Tehran to weaponize energy flows. In response, Washington is seeking to ensure that oil continues to reach markets, even if it means temporarily relaxing sanctions on Russia. Bessent framed the move as part of President Trump's energy agenda, which has pushed US oil and gas production to record levels, but now requires tactical flexibility to maintain stability.