Sen. Ruben Gallego (D-Ariz.) speaks at a “People’s State of the Union” event prior to U.S. President Donald Trump’s State of the Union address in Washington, DC, on February 24, 2026.
Elizabeth Franz | Reuters
Congressional Democrats are calling on the Trump administration to immediately rescind sanctions waivers that allow Indian refiners to buy Russian crude oil as the Iran war wreaks havoc on global energy markets.
“The recent decision to grant a 30-day waiver is dangerous, self-defeating, and indefensible,” Rep. Sam Licciardo, D-Calif., and Sen. Ruben Gallego, D-Ariz., said in a letter to Treasury Secretary Scott Bessent, which was shared exclusively with CNBC. “This waiver is an incomprehensible act of material benefit to the enemy.”
Last week, the Treasury Department imposed a temporary 30-day sanctions carve-out to allow India to buy Russian crude oil to ease the soaring oil prices caused by the war and traffic congestion in the Strait of Hormuz.
The soaring oil prices come with less than eight months until November’s midterm elections, which could flip the House and Senate to Democratic control, and polls show voters are dissatisfied with President Donald Trump’s handling of the economy.
However, after the sanctions waiver was issued, it was reported that Russia was helping Iran target US ships, aircraft, and bases in the region. In their letter, Mr. Gallego and Mr. Ricardo warned that they would oppose any temporary lifting of sanctions that would provide a windfall to Russia, saying it would help target U.S. forces in the Middle East.
“Rather than implementing the necessary contingency plans to continue supplying India and other allies with alternative resources, the administration’s ill-fated approach allowed Russia and other adversaries to profit from oil reserves previously limited by sanctions, harming U.S. military forces, and supporting Russian efforts to sabotage U.S. intelligence agencies,” Gallego and Ricardo said in the letter. “By granting this immunity, you are sending a signal that the United States will reward attacks on our troops, not deter them.”
About 20% of the world’s oil and gas moves through the Strait of Hormuz, but the strait has become nearly impassable since the U.S. and Israeli attack on Tehran began.
In the days after the war began, oil prices soared. U.S. crude topped $108 a barrel on Sunday, with global benchmarks rising as well. brentrapidly approaching $110 per barrel. That caused U.S. gas prices to skyrocket, hitting $3.44 a gallon on Sunday, according to GasBuddy.
The price hike comes as both parties seek to win over economically anxious voters ahead of November’s midterm elections that will determine whether Democrats or Republicans control Congress during the final years of President Trump’s term. Trump promised to lower costs, including gas prices, during the 2024 campaign, but his approval ratings on the economy plummeted as voters expressed concerns about affordability.
In their letter, Mr. Ricardo and Mr. Gallego, members of the House Financial Services Committee and the Senate Banking Committee, argue that war only makes life more difficult for Americans.
“A prolonged conflict with Iran and widespread military operations across the Middle East will only deepen the energy cost crisis, forcing Americans to pay more and exacerbating the affordability crisis that too many Americans face,” they wrote.
Meanwhile, millions of barrels of Russian oil are stranded at sea due to U.S. sanctions imposed as punishment for Russia’s invasion of Ukraine.
Energy Secretary Chris Wright defended the move to temporarily allow sales of Russian crude to India, calling it a “pragmatic step” to divert oil that would eventually be sold to China. He said it could help ease the immediate price spike until the United States achieves its military objectives in Iran.
“We’re not just helping Russia by accelerating oil sales to stop rising energy prices and keep oil flowing to refineries in Europe and Asia,” Wright said. “We’re just doing the pragmatic thing to get through a short period of time where we’re going to see a period of even lower energy prices.”
Asked about reports of Russian intelligence sharing, Wright said, “There are rumors, but I don’t know if they are true.”
He added: “Russia is good at causing trouble all over the world.”
Ricardo and Gallego asked Bessent whether he intended to continue the exemption if the Strait of Hormuz remains closed. They also asked whether Treasury had advance notice of information sharing between Russia and Iran and whether there were conditions under which the exemption could be revoked.
They also requested information about the emergency oil price stabilization plan the administration had in place before launching its attack on Iran.
“The following questions address two different areas of responsibility: the first concerns the specific waiver decisions and their immediate impact on the integrity of sanctions, energy markets, and military security,” they wrote about the questions. “The second concerns the administration’s failure to plan ahead of unauthorized military action and the lack of coordination with allies and partners whose cooperation is essential to maintaining America’s sanctions architecture, which is undermined by this waiver.”
