US Grants India Temporary License for Russian Oil to Offset Hormuz Blockade

Key Facts

1The US Treasury Department issued a temporary 30-day general license allowing Indian refiners to purchase Russian crude oil and petroleum products.

2The move aims to alleviate global supply shortages caused by the blockade of the Strait of Hormuz, which handles approximately 20% of global oil.

3The license covers transactions for oil loaded before March 5, 2026, and expires on April 4, 2026.

The US Treasury Department has issued a temporary 30-day general license allowing Indian refiners to purchase Russian crude oil and petroleum products. This strategic move is designed to mitigate global supply shortages resulting from the ongoing blockade of the Strait of Hormuz, a critical transit point for 20% of the world's oil. The license applies to transactions for shipments loaded before March 5, 2026, and is set to expire on April 4, 2026. By facilitating the flow of Russian oil, the US aims to curb the rapid daily rise in energy prices and prevent a potential global recession. Analysts expect this injection of supply to provide a necessary cushion for the market, putting downward pressure on Brent and WTI benchmarks. The waiver represents a significant shift in geopolitical maneuvering as the US prioritizes energy stability amidst heightened regional tensions.