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The United States announced that it has allowed India to purchase Russian oil that is already on ships, aiming to help with global supplies during the conflict in West Asia. US Treasury Secretary Scott Bessent stated in a Fox Business interview on Friday that the world has a good amount of oil available. He mentioned that the Treasury has permitted India to begin buying Russian oil that is currently in transit. “The Indians have acted responsibly,” Bessent noted. He explained that they had been asked to stop purchasing sanctioned Russian oil this fall, and they complied. India was expected to replace it with oil from the US. However, to address the current shortfall in global oil supplies, they have been granted permission to accept the Russian oil. He indicated that other Russian oil may also be unsanctioned in the future. Bessent mentioned that there are many millions of banned barrels of crude oil on ships, and by lifting sanctions on them, the Treasury can boost supply. He added that they will continue to announce measures to help the market during this conflict.

Other officials from the Trump administration have also confirmed that the US has now permitted India to purchase Russian oil, several months after President Donald Trump set a 25 percent tax on India for buying oil from Russia. Energy Secretary Chris Wright posted on X on Friday, stating that the US is “allowing our friends in India” to take the Russian oil already on ships in Southern Asia, process it, and quickly distribute it to the market to ensure ongoing supply and relieve pressure due to the current US-Israel conflict with Iran. "We have taken short-term steps to help lower oil prices. We are permitting our friends in India to take oil that is already on ships, refine it, and quickly distribute those barrels in the market. This is a practical way to keep supply coming and reduce pressure," Wright stated. In an ABC News Live interview, he reported that long-term oil availability is “plentiful” and there are no concerns about that, but in the short term, it is essential to get oil into the market.

Wright explained that as oil prices increase slightly due to restrictions from the Strait of Hormuz, the US is taking short-term measures to address the situation. He remarked that there is a lot of floating Russian oil near Southern Asia, and China’s suppliers are not well treated, resulting in barrels just sitting there. "We have communicated with our friends in India and said, ‘Acquire that oil. Bring it to your refineries. ' This will allow stored oil to flow directly into Indian refineries, thus easing the pressure on other refineries globally, as they won't be competing with India for oil in that market," Wright said.

“We have several measures that are temporary and short-term. This does not change our stance on Russia. It is just a slight adjustment in policy to help keep oil prices a bit more stable than what we could manage alone,” he mentioned. On Thursday, as the situation with Iran worsened, the US announced a short-term 30-day exemption allowing Indian refiners to buy Russian oil.

“President Trump’s energy policy has led to record levels of oil and gas production. To ensure oil continues to flow into the global market, the Treasury Department is giving a temporary 30-day exemption for Indian refiners to acquire Russian oil,” Bessent stated. He mentioned that this “intentionally brief measure” will not significantly benefit the Russian government since it only allows transactions for oil that is already stuck at sea. “India plays a crucial role as a partner to the United States, and we expect that New Delhi will increase its purchases of American oil. This temporary solution will reduce the strain caused by Iran trying to take control of global energy supply,” Bessent added. Trump had placed a 25 percent penalty on India for purchasing Russian oil, with officials claiming that Delhi's imports were supporting Russia’s military efforts against Ukraine.

Last month, the US and India revealed they established a plan for a temporary trade agreement, and Trump issued an Executive Order lifting the 25 percent penalty on India, acknowledging New Delhi’s promise to cease any direct or indirect energy imports from Moscow and to buy more American energy products. A statement from the Treasury Department titled ‘Allowing the Sale and Delivery of Crude Oil and Petroleum Products from Russia Loaded on Vessels as of March 5, 2026, to India' stated that “all transactions that are normally needed for the sale, delivery, or unloading of crude oil or petroleum products from Russia loaded on any vessel are authorized until April 4, 2026, provided the delivery happens at a port in India, and the buyer is a company registered in India. ”

The general license released by the Treasury Department clarified that it does not permit any other transactions or activities banned by other Executive Orders, including any dealings with Iran, the Iranian government, or goods and services from Iran that are restricted by the Iranian Transactions and Sanctions Regulations.