India braces for higher oil costs as US ends key waivers on Russian and Iranian crude

India could face higher oil import costs after the United States confirmed it will not extend key waivers that allowed limited purchases of Russian and Iranian crude without sanctions exposure. The waivers had provided temporary relief in global oil trade amid supply disruptions and elevated prices.

US Treasury Secretary Scott Bessent said, "We will not be renewing the general licence on Russian oil, and we will not be renewing the general licence on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used," confirming the end of the temporary exemptions.

For India, a major crude importer, the move is expected to reduce access to discounted Russian shipments that had become a key part of its import basket following Western sanctions on Moscow. Refiners may now have to rely more on traditional suppliers in the Middle East, Africa and the Americas, depending on price and availability.

The 30-day waiver issued in March had allowed Indian refiners to clear Russian crude already loaded on vessels. At the time, global oil prices had surged above $100 a barrel amid geopolitical tensions and supply concerns.

Bessent had earlier said, "To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea."

The Russian oil waiver expired on April 11, while the Iranian waiver is set to expire on April 19.

Market watchers say the development could tighten global supply flows and add pressure to crude prices, which have already risen sharply since tensions escalated in the Middle East.