The United States government has reached out to India with a specific request to purchase millions of barrels of Russian crude oil currently stranded at sea. This move is aimed at stabilizing the global oil market and preventing a sudden price spike caused by ongoing military tensions in West Asia. US Energy Secretary Chris Wright confirmed that this is a temporary and practical step. The oil was originally meant for Chinese refineries but is now being diverted to Indian ports to clear the backlog faster.
Why the US wants India to buy this oil
Around 100 to 120 million barrels of Russian oil have been stuck waiting offshore for up to six weeks. The US administration recognized that the ongoing conflict in the Strait of Hormuz could disrupt global energy supplies. By having Indian refineries buy and process this floating oil, the US hopes to reduce competition for other global supplies. Treasury Secretary Scott Bessent noted that this action keeps oil flowing without giving any new financial benefit to Russia, as the cargo was already loaded.
Details of the new 30-day license
To make this purchase legally possible under current sanctions, the US Treasury issued General License 133 on March 5, 2026. This special waiver is valid for exactly 30 days, ending on April 4, 2026. The rules state that the oil must have been loaded on ships before March 5. Furthermore, the cargo must be delivered to an Indian port and purchased by an entity registered under Indian law.
Reactions from government officials
US officials have made it clear that their overall policy on sanctions against Russia remains the same. US Ambassador to the UN Mike Waltz called the decision a common sense approach to give a 30-day pause and clear the idling ships. Energy Secretary Wright added that the primary goal is just to keep oil prices down during this crisis. Meanwhile, this development has sparked political discussions in India regarding the government’s strategic autonomy in buying foreign oil.
