Why US Allowed India To Buy Russian Oil For 30 Days Amid Strait Of Hormuz Supply Crisis? Explained
· Free Press Journal
Mumbai: The United States has allowed India to continue buying Russian crude oil for 30 days as a temporary measure to stabilise global energy markets.
The decision comes at a time when tensions in the global oil market are rising. The move is aimed at maintaining steady oil supplies and preventing sudden spikes in prices.
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US Energy Secretary Chris Wright said the decision does not represent a change in America’s long-term policy toward Russia. Instead, it is a short-term step to support stability in global oil markets.
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The decision was influenced by the recent disruption linked to the Strait of Hormuz, one of the most important oil shipping routes in the world.
Any blockage or disruption in this route affects global oil supply and creates uncertainty in international markets.
Since India imports a large portion of its oil from the Middle East, the US asked Indian refineries to purchase Russian crude shipments that are already stranded at sea. This step is expected to reduce pressure on global oil supplies.
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Chris Wright clarified that the exemption should not be seen as a change in the US stance toward Russia.
He explained that allowing Indian refineries to process the oil already present at sea would help distribute supply more evenly across global markets.
According to him, this move will reduce competition among international refineries and help keep oil prices under control for a limited period.
Energy Markets Expected To Stabilise
The US Energy Secretary also said the current situation in energy markets is temporary.
He added that oil prices are likely to return to normal levels once tensions in the region ease.
Wright noted that the United States has strategic petroleum reserves, and globally there are also significant oil storage reserves available.
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US Treasury Secretary Scott Bessent said the 30-day exemption will apply only to Russian oil shipments that are already at sea.
The main goal is to maintain oil supply in global markets and prevent sudden price spikes.
He also stressed that the decision will not provide major financial gains to Russia because the exemption is limited and temporary.
Experts believe that while global oil markets may face short-term price fluctuations, there is currently no risk of an oil shortage worldwide.