US-Iran War: Due to the US-Iran war, oil supply across the world has been badly affected. Due to the closure of the Strait of Hormuz and tension in the Middle East, crude oil prices crossed $ 100 per barrel. Amidst this crisis, the US Treasury Department gave temporary relaxation in sanctions on oil purchases from Russia and Iran in March 2026. This exemption was only for 30 days, which has now ended. India got special relief from this arrangement, because it was meeting its energy needs by buying cheap oil from Russia.
However, US Finance Minister Scott Besant has clearly announced that Washington will not extend the relaxation period in these sanctions. Besant said, “We will not renew the general license for Russian and Iranian oil. The oil that was loaded on ships or in transit before March 11 was allowed to be sold. All that old oil has now been used or sold.”
Let us tell you that this exemption was given on 12 March 2026, which ended on 11 April 2026. During this period, Indian refineries were able to buy already loaded Russian crude, which reduced the impact of oil shortage in the global market to some extent. Besant had earlier stressed that this was a “deliberately short-term” arrangement, which would not bring major financial benefits to Russia. Its purpose was only to maintain supply in times of crisis, not to provide permanent relief.
This policy of the Trump administration is in line with the US-India trade agreement, in which India had indicated to limit Russian oil purchases. Despite the discount, India is working towards increasing the purchase of American and Venezuelan oil. However, global prices remain high due to the war, putting pressure on import-dependent countries like India. India meets 85% of its oil needs through imports and Russia has long been its major supplier.
Now after the deadline, the challenges before India have increased. If complete restrictions are implemented on new purchases, then expensive oil may have to be purchased, which will affect the prices of petrol and diesel and inflation.