Washington, March 7: Scott Besant indicated that during the ongoing Middle East conflict, Washington might temporarily ease some sanctions on Russian oil supplies to stabilize the global energy market. This move could allow India to continue purchasing Russian oil.
In an interview with Fox Business, Besant noted that the U.S. had already granted India some flexibility due to disruptions in global supply leading to rising prices.
“Indians have played a very responsible role. We asked them to stop buying restricted Russian oil, and they complied,” he stated.
He explained that India initially planned to replace this supply with U.S. crude oil. However, due to disruptions in global oil supply and increased insurance premiums for tankers passing through the Strait of Hormuz, Washington permitted temporary adjustments to avoid shortages.
“To mitigate the temporary oil shortage worldwide, we have allowed them to accept Russian oil,” Besant added.
These comments come at a time when oil prices have surged amid fears that tensions related to Iran could disrupt shipments through this narrow waterway, linking the Persian Gulf to global markets. Increased costs for war-risk insurance have caused delays for numerous tankers.
Previously, Trump announced plans to stabilize maritime energy trade by increasing government-backed insurance coverage for oil shipments passing through the Gulf region. This aims to reassure insurance and shipping companies that cargo will remain safe despite security concerns.
Besant also suggested that Washington could review existing sanctions on Russian crude oil already at sea to release additional supplies. “We may also lift sanctions on other Russian oil,” he mentioned.
He pointed out that a significant amount of restricted crude oil is currently stranded at sea, with hundreds of millions of barrels available. Easing restrictions on these cargoes could lead to a rapid increase in supply. “In fact, by lifting these restrictions, the Treasury could generate supply, and we are considering this,” he said.
As the conflict progresses, the administration will take further steps to stabilize the oil market. “We will continue to announce new measures to provide relief to the market during this conflict,” he added.
Since the imposition of sanctions by Western countries following Moscow’s invasion of Ukraine in 2022, India has become one of the largest buyers of discounted Russian crude oil. India argues that diversifying supply sources is essential for energy security and meeting domestic demand.
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LKJ/RS/Piyush
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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