U.S. “allowing” India to import Russian oil will help mitigate price spikes and delays, say analysts

U.S. allows India to import Russian oil for 30 days to ease price spikes, prompting political backlash against Modi’s government.

The decision by the U.S. to “allow” India to import Russian oil for a period of 30 days will help mitigate the spike in the price of oil and delays in oil shipments to import-dependent India, according to analysts. 

U.S. Treasury Secretary Scott Bessent, in an early morning post on X on Friday (March 6, 2026), said that the U.S. was granting India this 30-day reprieve to “alleviate pressure caused by Iran’s attempt to take global energy hostage”. 

President Trump's energy agenda has resulted in oil and gas production reaching the highest levels ever recorded.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 comes at a time when the Indian government has made assurances that India has adequate amounts of crude oil, petrol and diesel in reserve. According to sources, India currently has 25 days of crude oil in reserve, and 25 days each of petrol and diesel each. 

This also follows a relatively sustained period where India has been cutting back on its Russian oil imports and increasing oil imports from the U.S. 

“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,” Mr. Bessent posted on X. “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.”