New Delhi witnessed a significant relief in global crude oil markets on Friday morning, with benchmark prices tumbling after a volatile week sparked by escalating tensions between Israel and Iran. Brent crude futures dipped 1.52% to $84.21 per barrel on the Intercontinental Exchange, while West Texas Intermediate (WTI) crude fell 2.10% to $79.31 per barrel in early trading.
The primary catalyst for this downturn was the United States’ decision to offer Indian refineries a 30-day temporary waiver to purchase Russian crude oil currently stranded at sea. This move comes amid fears of supply disruptions in the Strait of Hormuz, a critical chokepoint for global energy flows, exacerbated by the recent outbreak of conflict.
US Treasury Secretary Scott Bessent emphasized that the waiver is strictly limited to oil already en route and afloat, ensuring no substantial financial windfall for the Russian government. ‘Our priority remains maintaining global oil supply stability,’ Bessent stated, underscoring the Treasury Department’s targeted intervention.
For India, which imports nearly 90% of its oil needs and consumes about 5.5 million barrels daily, this waiver provides crucial breathing room. Russia has emerged as India’s top supplier, shipping an average of 1.04 million barrels per day in February, outpacing Saudi Arabia and Iraq. Around 15-20% of India’s imports traverse the Hormuz Strait, making its security paramount.
The White House has also signaled readiness to deploy naval escorts for tankers navigating the strait if tensions with Iran intensify further. Analysts suggest these measures could foster long-term stability in energy markets, potentially averting broader economic ripple effects. As markets digest this development, oil traders are closely watching for sustained de-escalation signals.