For much of last year, the US government sought to drain Russia’s war machine of cash by eliminating one of its most loyal customers, India.
Under President Donald Trump’s pressure campaign, the White House imposed high tariffs on many of New Delhi’s exports and sanctioned two of the Kremlin’s biggest oil companies.
The strategy seemed to be working. India has not completely eliminated its dependence on Russian oil, but it has significantly reduced its purchases in favor of supplies from the Middle East.
However, last week’s joint attack on Iran by the United States and Israel effectively closed the Strait of Hormuz, through which nearly all of the Middle East’s oil flows. Iran has also threatened to attack energy infrastructure in neighboring countries in retaliation for its airstrikes on Tehran’s main energy storage facilities.
On Sunday, oil prices rose above $100 a barrel for the first time since Russia’s invasion of Ukraine in 2022, amid fears of further production disruptions and restrictions.
With few other options left, India is now turning back to Russian oil.
Recognizing New Delhi’s plight, the United States last week granted Indian refiners a 30-day exemption to buy Russian crude currently stranded at sea. U.S. Treasury Secretary Scott Bessent said the move was “to allow oil to continue flowing into global markets.”
After months of pressure from the White House to end its purchases of Russian oil, it now has the green light to do just that, and the proceeds continue to shore up the very war chest that Washington has spent a year trying to deplete.
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