India seeks US extension of Russian oil waiver as Iran war drives energy shock

India has asked the United States to extend a temporary waiver allowing it to import Russian crude oil, as the ongoing conflict in the Persian Gulf continues to strain global energy markets and push prices sharply higher, Bloomberg reported.

The waiver, first granted in March and later extended until May 16, was designed to help stabilise oil markets by permitting additional crude flows at a time of tightening supply conditions.

Indian officials told Washington that maintaining stable energy supplies remains a priority, warning that continued volatility in global oil prices could have broader economic consequences. They said rising energy pressures were already affecting 1.4 billion people, including through shortages of cooking gas, according to the report.

Indian refiners have accelerated purchases of discounted Russian crude ahead of the waiver’s expiry. Data from Kpler shows India’s Russian oil imports in May have reached a record 2.3 million barrels per day, as refiners maximised shipments during the authorisation window. The waiver permits imports of Russian cargoes that were already loaded.

Global oil markets have tightened amid the nearly 11-week conflict in the Persian Gulf, driving Brent crude above $105 per barrel, compared with around $72–73 before the escalation began in late February. The rise of roughly $32–34 per barrel represents an increase of about 44–47%.

The US has previously encouraged India to reduce purchases of discounted Russian oil as part of wider efforts to pressure Moscow over the war in Ukraine, although Russian crude is not subject to a blanket US sanctions regime.

India’s Defence Ministry said the country holds 60 days of crude oil reserves, 60 days of natural gas and 45 days of LPG in rolling stocks, with foreign exchange reserves at $703 billion.

India is the world’s third-largest oil refiner and fourth-largest exporter of petroleum products, supplying markets in more than 150 countries. It said domestic demand is being fully met but warned of mounting costs from elevated global prices.

"But there is a huge cost being borne by the nation as international crude prices are continuing at very high levels. Fuel conservation can ease this burden," the ministry said.

By Aghakazim Guliyev