US To Not Renew Sanctions Waiver On Russian & Iranian Oil; India Among Affected Buyers

Washington: The United States will not be renewing the waiver that allowed the purchase of some Iranian and Russian oil without facing US sanctions. Buyers, including India, were major beneficiaries of the sanctions waiver.

Treasury Secretary Scott Bessent, speaking to reporters on Wednesday, said that the United States would not renew the general licence on Russian oil or the general licence on Iranian oil. He noted that the waiver applied to oil that was already in transit prior to 11 March and that this supply had now been exhausted.

He added that countries had been informed that if they were buying Iranian oil, or if Iranian funds were held in their banks, the United States was now prepared to apply secondary sanctions.

The interim waivers were designed as a short-term measure to stabilise rising energy prices, allowing limited transactions involving oil already loaded onto vessels before specified deadlines to reach global markets and help relieve pressure on energy supplies during the conflict.

The waivers on the purchase of Russian oil allowed India to secure additional supplies during global oil disruptions. Reportedly, Indian refiners placed orders for roughly 30 million barrels of Russian oil during that period.