India can no longer buy cheap oil from Russia and Iran, Trump has put a stop on the period of exemption from sanctions

The US has withdrawn concessions allowing cheap oil purchases from Russia and Iran, causing significant problems for many countries, including India. This decision by the Trump administration comes as a major setback due to the closure of the Strait of Hormuz.

India can no longer buy cheap oil from Russia and Iran, Trump has put a stop on the period of exemption from sanctions, what are the options now?

US President Donald Trump has now ended the exemption from US sanctions for buying cheap oil from Russia and Iran. The US administration has said that it is no longer extending the exemption for buying cheap oil from Iran and Russia. On the one hand, America has imposed a blockade on the Strait of Hormuz and on the other hand, it has made it more difficult to buy cheap oil from Russia and Iran. Amidst the rising prices of crude oil, problems are increasing for many countries including India.

India got the biggest advantage

When the US relaxed sanctions on oil purchases from Russia and Iran, India benefited the most. Because the closure of the Strait of Hormuz cut off oil supplies, India began purchasing large quantities of oil from Russia. Furthermore, after nearly seven years, India also purchased approximately four million barrels of oil from Iran. In this crisis-ridden environment, many Indian oil companies took advantage of this relaxation to meet their oil needs.

According to Kepler data, India surpassed Russia in March

Oil imports reached approximately 1.98 million barrels per day. This figure reached the highest level since June 2023. However, in April, it will be 1.57 million barrels per day. The decrease in imports was due to the temporary closure of the Nayara Energy refinery.

Why did America give exemption

Following the closure of the Strait of Hormuz due to the Iran War, the US provided sanctions relief, allowing Russia to purchase its stranded crude oil for 30 days. However, this period expired on April 11th, and the US has refused to extend it. The US intended to control oil prices by doing so, but tensions in the Middle East have sent oil prices skyrocketing.

India faces a new challenge

This move by the US administration could create new problems for many countries, including India. Currently, the US blockade of the Strait of Hormuz continues and has now banned oil purchases from Russia. Consequently, India will have to resort to new options to meet its oil needs.

US Treasury Secretary Scott Bessent stated that the US is not extending the general license granted for Russian and Iranian oil. This exemption applies only to oil shipped before March 11th and has already been used. It has also emerged that several countries, including India, have requested the US extend this period, but the US has refused.