Energy Security Boost for India: US Grants India Temporary Waiver to Buy Russian Oil and Gas Offers from Australia and Canada.

In an effort to stabilize the world's energy supplies amid escalating tensions in the Middle East, the United States has granted a temporary waiver that permits India to keep buying Russian oil.

In a post on X on Friday, March 6, 2026, US Treasury Secretary Scott Bessent declared that the Treasury Department would allow Indian refiners to purchase Russian crude for a brief time.

"The Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil in order to enable oil to continue flowing into the global market," Bessent stated.

The US anticipates that India will import more energy from the US in the future, he continued. “India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil." Bessent wrote, adding that the temporary step would “alleviate pressure caused by Iran’s attempt to take global energy hostage.”

Tension in the Middle East disrupts international energy flows

A significant portion of the world's oil supply passes through the Strait of Hormuz, a crucial route that could be disrupted by the escalating conflict in the Middle East.

In an effort to counteract supply disruptions brought on by the conflict, Russia earlier indicated that it is prepared to reroute crude shipments to India. According to Reuters, approximately 9.5 million barrels of Russian oil are currently positioned close to Indian waters and could arrive there in a matter of weeks.

The possible change in supply comes after Iranian attacks on ships in the area, which have sparked concerns about a partial closure of the Strait of Hormuz. Approximately 40% of India's imports of crude pass via this vital waterway.

Global Oil Volatility: India Begins Hunt for Alternative Crude Sources

In light of the regional crisis, India, the third-largest oil consumer in the world, has been looking into alternative sources of crude. In anticipation of potential disruptions in Middle Eastern shipments, New Delhi has been evaluating crude availability for the next ten to fifteen days, according to government sources cited by Reuters. Together, India's refiners process roughly 5.6 million barrels of crude every day and stay in touch with traders who sell Russian oil.

Since the start of the conflict in Ukraine, Russian crude has been a major component of India's energy mix. According to market data cited in the report, Russian imports fell to roughly 1.1 million barrels per day in January—the lowest level since November 2022—but subsequently increased to about 30% of India's total crude imports.

Countries Step Forward with Oil and Gas Supply Offers to India

According to additional government sources, Australia and Canada have offered to supply gas to India while New Delhi looks into alternative energy sources in light of the growing tension in West Asia.

Approximately 60 million of the 195 million metric standard cubic meters of gas per day (MMSCMD) that India currently imports come from Qatar. The government is actively looking for new markets to guarantee continuity and diversification while keeping an eye on supply risks.

According to official reports, India is also negotiating the purchase of LPG and crude oil with major oil producers and international traders. To evaluate market stability and supply prospects, talks are being held with the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA). Securing insurance coverage for Indian vessels operating in sensitive maritime corridors is the main goal of negotiations with the US.

According to an early report, Russia also offered assistance in shipping crude oil to India. Denis Alipov, the Russian ambassador, stated, "We have been open to supplying crude oil to India."

The two tankers are carrying a total of 1.4 million barrels of Urals crude, according to vessel monitoring data from Kpler and Vortexa. They are scheduled to discharge at Indian ports later this week. Before the ships changed their course, earlier voyage signals had indicated an East Asian destination.