The ongoing Iran war and the effective closure of the Strait of Hormuz have triggered a major shift in US energy policy. After previously criticising India for importing Russian oil, Washington is now urging New Delhi to purchase the same crude in order to keep global oil supplies flowing and ease pressure on international markets.
Hormuz crisis disrupts global oil supply
The war in the Middle East and the closure of the Strait of Hormuz — through which roughly 20% of the world’s oil supply passes — have sent crude prices to their highest levels since the summer of 2024.
To ease the pressure on global markets, the US has encouraged India to buy Russian crude currently stranded at sea.
India given a 30-day window
US Treasury Secretary Scott Bessent said India had been granted a 30-day window to purchase Russian oil shipments already waiting on tankers.
Bessent described India as a “very good actor” and said the move would help reduce supply pressure in global energy markets.
India never fully stopped buying Russian oil
Following Russia’s invasion of Ukraine in 2022, China and India became the largest buyers of Russian crude. At one point, India accounted for nearly 40% of Russia’s oil exports.
Although US sanctions later reduced those purchases, India never fully halted imports. Russian oil accounted for about 21% of India’s imports in January, rising again to roughly 30% in February.
Heavy dependence on imported energy
India imports nearly 90% of its total energy needs, with around 40–50% of its crude oil imports coming from the Middle East.
With the Strait of Hormuz effectively closed, Russian crude offers an alternative supply route that could help offset the disruption.
Millions of barrels waiting at sea
According to reports, Indian refiners have already purchased more than 10 million barrels of Russian crude.
Another 15 million barrels are currently stored on tankers in the Arabian Sea and the Bay of Bengal and could reach Indian ports within days.
Why Washington changed its stance
US Energy Secretary Chris Wright said the request to India was aimed at easing pressure on global refining capacity and stabilising oil prices.
If Indian refineries quickly process the Russian oil stored at sea, it would immediately bring additional supply into the market and reduce competition among other countries trying to secure crude.
India’s growing role in global energy markets
India is the world’s third-largest oil importer, the fourth-largest refining hub, and the fifth-largest exporter of petroleum products.
By buying discounted Russian crude and refining it for global markets since 2022, India has emerged as a key player in maintaining stability in international energy supply.
