Washington: US Treasury Secretary Scott Bessent indicated that Washington could temporarily ease some restrictions on Russian oil supplies and allow India to continue purchasing to stabilize global energy markets during the ongoing Middle East conflict.
In an interview with Fox Business, Bessent said the United States had already allowed India some flexibility as global supply disruptions pushed prices higher.
“The Indians had been very good actors. We had asked them to stop buying sanctioned Russian oil this fall. They did,” Bessent said.
He said India had originally planned to replace those supplies with American crude. “They were going to substitute it with US oil,” he added.
But with global oil shipments disrupted and insurance premiums soaring for tankers moving through the Strait of Hormuz, Washington allowed a temporary adjustment to prevent shortages.
“To ease the temporary gap of oil around the world, we have given them permission to accept the Russian oil,” Bessent said.
The comments come as oil prices have surged amid fears that tensions involving Iran could disrupt shipments through the narrow waterway linking the Persian Gulf to global markets. Dozens of tankers have reportedly been delayed due to rising war-risk insurance costs.
President Donald Trump has already announced plans to stabilise maritime energy trade by expanding government-backed insurance coverage for oil shipments moving through the Gulf region. It aims to reassure insurers and shipping companies that cargoes will remain protected despite security concerns.
Bessent also suggested Washington could release additional supplies by revisiting sanctions affecting Russian crude already in transit. “We may unsanction other Russian oil,” he said.
He noted that large volumes of sanctioned crude are currently stranded on the water due to restrictions.
“There are hundreds of millions of sanctioned barrels of sanctioned crude on the water,” Bessent said.
According to him, easing restrictions on those cargoes could quickly boost supply. “In essence, by unsanctioning them, Treasury can create supply. And we are looking at that,” he said.
Bessent added that the administration intends to implement additional steps to stabilize oil markets as the conflict unfolds.
“We’re going to keep a cadence of announcing measures to bring relief to the market during this conflict,” he said.
India has been one of the largest buyers of discounted Russian crude since Western sanctions were imposed after Moscow’s invasion of Ukraine in 2022. New Delhi has argued that energy security and domestic demand require diversified supply sources.
(IANS)
