The United States may soon withdraw a temporary exemption that has allowed countries, including India, to continue purchasing Russian oil, according to US Secretary of State Marco Rubio. The development could have significant implications for India’s energy security and global oil markets amid heightened geopolitical tensions. Speaking during a congressional hearing on Tuesday, Rubio indicated that Washington intends to phase out the waiver introduced earlier this year.
The exemption was designed as a short-term measure to cushion global energy markets from disruptions caused by the blockade of the Strait of Hormuz during the ongoing conflict involving the US, Israel and Iran.
"We would like to end it as soon as we possibly can because the underlying policy of this country has been to sanction their oil. These are time-limited waivers for the purpose of opening up more global supply," Rubio told the Committee.
The waiver was first announced in March and has since been renewed twice. Its current extension is scheduled to expire on June 17. During the hearing, Rubio clarified that the final decision on whether to continue or terminate the exemption would rest with the US Treasury Department.
When questioned by Democratic Senator Jeanne Shaheen, who argued that the waiver had indirectly benefited Russia, Rubio stopped short of confirming whether another extension would be granted.
When the exemption was unveiled, US officials argued that allowing purchases of seaborneRussian oilwould help stabilise global energy supplies without significantly benefiting Moscow financially. However, persistent volatility in international crude prices has complicated the situation. Rubio defended the temporary measure, saying it was intended to mitigate wider disruptions in energy markets.
"The problem we're facing, too, is there's a contagion potential, and that is that at some point we can do strategic reserves, we can do some of the other things that we've done to alleviate global supply, but at some point you have to ensure -- this is not so much for us," he told the Senate Foreign Policy Committee.
The waiver became particularly important after tensions in the Middle East disrupted traditional energy routes. Iran’s move to block the Strait of Hormuz disrupted a crucial maritime corridor through which a substantial share of global oil and gas supplies passes, raising concerns for energy-importing nations across South Asia.
India emerged as one of the major beneficiaries of the waiver, resuming purchases of Russian crude after supply concerns intensified due to instability in the Gulf region. The issue comes against the backdrop of growing pressure from US PresidentDonald Trump, who had previously criticised India’s Russian oil imports and accused New Delhi of helping finance Moscow’s war effort in Ukraine. Washington had even imposed an additional 25 per cent tariff on Indian goods before later reversing the move.
According to a White House fact sheet, India agreed to halt purchases of Russian oil as part of broader trade negotiations.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
