Summary and overview of the news. The United States has extended the exemption period on Russian oil purchases by one month, providing significant relief to India. Additionally, after Iran announced the full reopening of the Hormuz Strait, crude oil prices have declined. In March 2026, India increased its Russian oil imports to over double, reaching $5.8 billion.
April 19, Kathmandu. The United States has once again reversed its stance by extending the exemption period on Russian oil purchases by one month. This decision is seen as an effort to stabilize markets amid rising global energy prices caused by tensions with Iran. Recently, the US Treasury Secretary announced the end of the discount on Russian oil, but the exemption period has now been prolonged, indicating a policy shift by the administration. Critics have described this as a ‘U-turn’ not only by Trump but his entire team. Following this, Iran announced the full reopening of the Hormuz Strait, leading to a drop in crude oil prices. Brent crude prices fell below $90 per barrel, compared to about $70 before the war began.
Iran’s Foreign Minister Abbas Araghchi stated that after a ceasefire in Lebanon, all commercial vessels’ passage through the Hormuz Strait would be fully open. However, Trump stated that although the Hormuz Strait remains open for commerce and transit, the naval blockade would continue. There is a possibility of a second phase of talks between the US and Iran, with Pakistan mediating. The US administration has banned all countries except three from purchasing Russian oil via seaborne routes by April 17. This exemption allows the purchase of Russian oil already loaded onto ships until May 16. Similar exemptions were issued in March, which expired on April 11. Under the new ‘General License 134B,’ shipping and selling Russian oil and petroleum products loaded on vessels is permitted until April 17, 2026. However, Iran, North Korea, and Cuba are excluded from this exemption.
Energy market experts closely following the oil sector interpret the US decision as significant relief for India. International oil market expert Narendra Taneja said, “This decision targets the US domestic population, which feels political pressure when oil prices rise.”
The US midterm elections are scheduled for November, and the war with Iran has affected Trump’s public support. Taneja added, “While this decision impacts other countries, it offers considerable relief to India. When disruptions occur at the Hormuz Strait, India faces issues only with LPG and LNG supplies, but if the conflict had lasted beyond 20 days, oil shortages could have emerged.” India imports nearly 90% of its total oil requirements. Previously, imports mainly came from Gulf countries, but after the Ukraine war, India increased investments in cheaper Russian oil. When US tariffs affected those imports, India resumed higher imports from Gulf countries, but the Hormuz Strait crisis created challenges. India never fully stopped purchasing Russian oil and has actually increased imports after the US exemptions. According to Narendra Taneja, Russian oil imports have seen a significant rise over the last four weeks.
Ajay Srivastava, head of the Delhi-based think tank Global Trade Research Initiative, emphasized further enhancing energy cooperation with Russia. According to him, the one-month extension of the exemption has limited effect since it only applies to oil already loaded onto ships.
India’s Petroleum Ministry imports oil from 41 countries. Narendra Taneja noted that the US sanctions and the Hormuz Strait crisis have not significantly impacted India. However, the logistics of India’s oil imports are complex. Oil shipments take 50-60 days from the US and Brazil, 28 days from Russia, and only 5-7 days from Gulf countries. Various sizes of tankers, differing in speed and capacity, are used for transporting oil.
The US exemption means that despite the war, oil tankers already at sea can continue supplying. These ships were coming from countries like the US, Brazil, Guyana, and Angola. Even when oil prices reached $110 per barrel during the conflict, India purchased oil at $140 per barrel. India’s foreign currency reserves and strong relations with oil-producing nations bolstered its ability to manage supplies. When LPG and LNG supplies were disrupted, India urgently sought supplies from Argentina, from where shipments take 58 days, but significant quantities were delivered.
According to data from a European think tank, India’s Russian oil imports reached $5.8 billion in March 2026. The Center for Research on Energy and Clean Air reported that in March 2026, India imported $371 million worth of coal and $196 million worth of petroleum products from Moscow. Since 2022, New Delhi has become a major market for Russian oil. In 2024, India was purchasing approximately 2 million barrels daily.
Russian Ambassador Denis Alipov assured expanding exports of oil, LPG, and LNG to India, calling India a reliable partner. The availability of cheaper Russian oil is helping control costs and stabilize global oil supplies amid ongoing uncertainties. Indian refineries had previously adapted to restrictions and have resumed purchases after the exemption was granted. The extension further strengthens India’s strategy, prioritizing energy security.
Ajay Srivastava suggested that India should enter into a long-term (20-year) agreement with Russia and reject American pressure.
