US to end Russia-Iran oil sanctions waiver, move may impact India

The United States has decided not to extend a temporary sanctions waiver that allowed limited transactions involving Russian and Iranian oil, a move that could have implications for countries like India amid ongoing geopolitical tensions.

According to the report, the waiver had permitted certain transactions related to Russian and Iranian crude under specific conditions, offering short-term relief to global oil markets during a period of heightened instability.

The exemption is now set to lapse, with US authorities indicating that it will not be renewed.

The decision is part of Washington’s broader sanctions framework targeting both Moscow and Tehran, as it seeks to maintain economic pressure while managing the global energy supply situation. Officials have also signalled stricter enforcement going forward, including the possibility of secondary sanctions on entities engaging in restricted oil trade.

For India, the development could pose challenges to its energy sourcing strategy. India has significantly increased imports of discounted Russian crude in recent years, making it one of the key buyers. Any tightening of sanctions or removal of transactional flexibility could impact procurement costs and supply planning for Indian refiners.

While India is not currently a major importer of Iranian oil due to existing sanctions, the inclusion of Iran in the waiver framework reflects broader efforts to stabilise oil flows during periods of disruption. With the waiver ending, global supply dynamics could tighten further.

The move comes amid escalating tensions in West Asia, including concerns over maritime security and disruptions around key shipping routes such as the Strait of Hormuz. These factors have already contributed to volatility in global oil prices.