US won't renew waiver allowing India to buy Russian oil
What's the story
The United States has decided not to renew the sanctions waivers for purchasing Russian and Iranian oil. This decision was announced by Treasury Secretary Scott Bessent on Wednesday. "We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used," Bessent told reporters.
Threat
Secondary sanctions threatened against Iran oil buyers
The Trump administration has also warned countries against continuing to buy Iranian oil, suggesting that it is prepared to impose secondary sanctions. "We have told countries that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions," Bessent said, adding that the approach would be "the financial equivalent of what we saw in the kinetic activities."
Waiver purpose
Waivers issued amid Middle East conflict
The waivers were intended as a temporary measure to stabilize rising energy prices after Iran's blockade of the Strait of Hormuz severely disrupted global oil supply chains. The US had issued a 30-day license for Russian crude loaded before March 12, which expired on April 11. A similar relaxation for Iranian oil was also issued on March 20, allowing around 140 million barrels of oil to reach global markets. This waiver is set to expire on April 19.
Import impact
India secured additional supplies during waiver period
The waivers had helped India secure additional supplies amid global oil disruptions. Reports suggest Indian refiners ordered around 30 million barrels of Russian oil during this time. Major refiners like Reliance had initially reduced purchases from Russian firms under US pressure but later increased their imports again. At least two supertankers carrying Iranian crude also reached Indian ports, marking a return to importing Iranian crude after sanctions tightened in 2018.