US grants 30-day waiver for Russian oil amid Gulf energy crisis
Treasury allows stranded Russian crude to reach India as Strait of Hormuz disruptions threaten global supply
The U.S. Treasury Department issued a temporary 30-day sanctions waiver on Friday, allowing Indian refiners to purchase Russian crude oil cargoes that were already at sea as of March 5. The move comes as Iran's attacks on Gulf energy infrastructure have effectively shut down shipping through the Strait of Hormuz, threatening to remove approximately 20% of the world's daily oil supply from global markets.
Treasury Secretary Scott Bessent framed the authorization as a limited stop-gap measure designed to prevent disruptions to energy supplies while minimizing financial benefits to Moscow. "This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea," Bessent said in a statement announcing the waiver.
The waiver, designated as Russia-related General License 133, permits transactions necessary for the sale, delivery, or offloading of Russian-origin crude oil and petroleum products loaded onto vessels on or before March 5, 2026. It specifically applies to cargoes destined for Indian ports and covers essential operational services including bunkering, crewing, vessel management, insurance, and port services required to complete the voyages.
The authorization follows a series of Iranian attacks on critical energy infrastructure across the Gulf region. On March 2, Iran launched drone strikes on Saudi Aramco's Ras Tanura refinery, the kingdom's largest oil processing facility, causing temporary operations shutdowns. Simultaneously, Iranian drones targeted QatarEnergy's LNG facilities in Ras Laffan Industrial City, prompting the Qatari state energy company to cease liquefied natural gas production.
The most severe disruption comes from the near-total closure of the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps has warned against vessel passage through the strategic waterway since February 28, effectively halting shipping traffic through the chokepoint through which approximately 21 million barrels of oil pass daily. Maritime traffic through the strait has been severely limited, with reports of only a handful of vessel crossings on March 4, far below typical levels.
Brent crude oil has surged in response to the supply shock, with the global benchmark trading around $85 per barrel on March 6. The price escalation reflects concerns about sustained disruptions to both oil and LNG supplies as the conflict escalates between Iran and U.S.-backed Gulf states.
Reliance Industries, India's largest refiner, is actively seeking to secure Russian oil supplies following the waiver announcement, according to reports. Indian refiners have become significant buyers of discounted Russian crude since the Ukraine war began in 2022, and the temporary authorization provides immediate relief as Gulf supplies face uncertainty.
The waiver expires on April 4, 2026, leaving questions about how energy markets will manage ongoing supply constraints if the Strait of Hormuz remains closed. Qatar's decision to halt LNG production is particularly concerning for Asian markets that rely heavily on Qatari gas imports, with analysts warning of potential energy shortages in the region.