How India had the last laugh after Trump's Russian oil waiver

With global oil prices shooting through the roof due to the Iran war and the subsequent closure of the Strait of Hormuz, the US has fallen back on India to purchase sanctioned Russian crude to keep oil flowing into the global market. What's behind Trump's sudden change of heart?

For most of last year, India faced the wrath of Donald Trump for purchasing Russian oil. It was even penalised with 50% tariff, accused of feeding Moscow's "war machine" and even "profiteering" from the sale of Russian crude. But, with the Iran war upending the global energy market, the US has now turned to its "friend" India to purchase the same Russian crude to keep oil flowing into the global market. Behind the American hypocrisy lies a hard truth - India cannot be ignored.

India has now been "granted" a 30-day window to buy Russian oil currently stranded at sea. US Treasury Secretary Scott Bessent, in an interview with Fox Business, called India a "very good actor" for complying with Washington's request to halt purchases of Russian oil. He said the move would help ease supply pressures in the global market due to the closure of the Strait of Hormuz, through which 20% of the world's oil supply passes.

The Middle East war, which is likely to drag on for weeks, has seen crude prices reach their highest levels since the summer of 2024.

However, it is pertinent to note one thing. India has not completely halted its Russian supply anyway. And, it also doesn't need permission from Trump to basically buy Russian oil -- an issue that has been raised by the opposition to corner the Narendra Modi government.

Last month, Trump unilaterally claimed that India had agreed to stop purchasing Russian oil as part of a proposed trade deal, which would have seen the US reduce tariffs to 18%. India, however, didn't confirm this.

After Moscow invaded Ukraine in 2022, China and India became Russia's biggest oil customers. In fact, India accounted for around 40% of Russian oil imports. However, after US sanctions on two Russian firms, India began cutting back on its oil imports.