India Rushes to Buy Russian Oil While US Issues Emergency License During Iran Conflict

The United States Department of the Treasury has issued a 30-day license allowing India to purchase Russian oil that is already loaded on maritime tankers, according to Treasury Secretary Scott Bessent.

The measure aims to stabilize global energy markets as military operations by the United States and Israel against Iran continue to disrupt supplies in the Middle East.

According to Scott Bessent, the temporary exemption will increase the availability of crude oil while tensions in the region remain high.

Temporary Measure to Avoid Market Shock

The US Treasury emphasized that the decision is strictly short-term and applies only to Russian crude that has already been loaded onto tankers and is currently at sea.

Officials say this limitation prevents Russia from gaining significant financial benefits from the transactions while still helping prevent sudden supply shortages in global markets.

India Resumes Russian Oil Purchases

According to Reuters, Indian oil refineries have already resumed purchases of Russian crude through spot contracts in order to compensate for supply disruptions caused by the conflict involving Iran.

Industry sources told the agency that Indian refiners rushed to secure millions of barrels of crude as the country remains highly vulnerable to shocks in energy supply.

Up to 40 percent of India's oil imports pass through the Strait of Hormuz, while existing reserves would last only about 25 days if shipments were interrupted.

Earlier this year, India reduced imports of Russian oil after pressure from the United States. That move helped New Delhi avoid potential tariffs of 25 percent and conclude an interim trade agreement with Washington.

However, according to Reuters, major Indian state-owned companies — Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals Limited - have now begun negotiations with traders.

Sources say these companies have already purchased roughly 20 million barrels of Russian oil for delivery between March and early April.

Russian Lawmaker Calls Move a Surprise for Washington

Aleksey Pushkov, a member of the Federation Council of Russia, described India's renewed purchases of Russian oil as an unpleasant surprise for Washington.

"It was the United States that did everything possible to disrupt the transit of oil and LNG through the Strait of Hormuz. In doing so, it undermined its own oil sanctions against Russia,” Aleksey Pushkov said.

Oil Prices Surge as Regional Uncertainty Grows

Amid escalating tensions in the Middle East, the price of benchmark Brent crude rose sharply on March 5, briefly reaching 85 dollars per barrel and approaching a one-year high.

Meanwhile, Russia's Urals crude climbed to 53 dollars per barrel, its highest level since October 2025.

Energy markets remain volatile because of uncertainty surrounding the ability of Middle Eastern producers to export hydrocarbons. Iran has effectively blocked navigation through the Strait of Hormuz, while reports continue to emerge about attacks on tankers in the Persian Gulf.

Shipping industry representatives say that statements from President Donald Trump promising accessible insurance and naval escorts for commercial vessels have not yet stabilized the situation.

Analysts Warn Oil Could Reach 200 Dollars

Alexander Frolov, deputy director of the National Energy Institute, believes oil prices could potentially rise as high as 200 dollars per barrel if supply disruptions deepen.

According to the analyst, if the global market experiences a genuine shortage of hydrocarbons, even 200 dollars per barrel could begin to look like an attractive price.