US Israel Iran War: The United States has announced that it would not be extending waiver of sanctions that allowed countries to buy Iranian and Russian crude oil. This could translate to massive challenges for countries like India that have been counting on cheap crude oil from Russia and Iran.
In a statement, US Treasury Secretary Scott Bessent remarked that Washington is in no mood to renew the sanction waiver on Russian and Iranian oil.
US Israel Iran War-Impact On India
India is heavily dependent on oil imports. It placed orders for approximately 30 million barrels of Russian oil after the waiver of sanctions was announced.
The latest development puts an abrupt end to the efforts of US President Donald Trump to leverage the waiver of sanctions to free up more supplies of oil to bring oil prices under check.
It is expected that an end to the waiver of sanctions would hurt countries like India. For instance, oil prices that are already in the range of $112 may go $120 or more. This would hurt every segment of the economy. For instance, a surge in oil prices could increase the cost of fertilizers and essential supplies. This would also have an impact on the supplies of LPG and PNG cylinders, causing mayhem across the country.
What Was The 30-Day Waiver?
The US Treasury Department issued a waiver of 30 days on March 12 this year. The waiver allowed countries like India to buy oil from Russia. The move was aimed at stabilizing energy markets worldwide amid the ongoing Middle East crisis.
Bessent had remarked then that the short-term measure would not help in offering significant financial benefit to Russia as it only permits oil transactions that are already stranded at sea. The US Secretary had also remarked then that Washington believes that Indian would gradually ramp up its US oil purchases.
