On March 7, Washington (NationPress) reported that US Treasury Secretary Scott Bessent suggested that the United States might consider a temporary relaxation of certain limits on Russian oil supplies, enabling India to persist in its purchases to stabilize the global energy market amid the escalating conflict in the Middle East.

In an interview with Fox Business, Bessent remarked that the US had already granted India some leeway as disruptions in global supply chains caused prices to surge.

“The Indians have acted responsibly. We had previously urged them to halt purchases of sanctioned Russian oil this past fall. They complied,” Bessent stated.

He noted that India initially intended to substitute these supplies with American crude oil. “They were planning to replace it with US oil,” he added.

However, due to the disruption of global oil shipments and soaring insurance costs for tankers navigating the Strait of Hormuz, Washington permitted a temporary adjustment to avert shortages.

“To mitigate the immediate oil deficit worldwide, we've authorized them to accept the Russian oil,” Bessent explained.

This announcement comes as oil prices have increased amid concerns that rising tensions with Iran could obstruct shipments through the narrow passage connecting the Persian Gulf to global markets. Numerous tankers have reportedly faced delays due to climbing war-risk insurance premiums.

President Donald Trump has also unveiled plans to stabilize maritime energy trade by broadening government-backed insurance coverage for oil shipments traversing the Gulf region, aiming to reassure insurers and shipping companies that their cargoes will remain safe despite security issues.

Bessent further indicated that Washington might explore additional measures by re-evaluating sanctions on Russian crude that is already en route. “We may consider unsanctioning other Russian oil,” he stated.

He highlighted that significant quantities of sanctioned crude are presently stranded at sea due to these restrictions.

“There are hundreds of millions of sanctioned barrels stranded on the water,” Bessent mentioned.

He added that lifting restrictions on these shipments could rapidly enhance supply levels. “Essentially, by unsanctioning, Treasury can create supply. We are actively exploring this option,” he remarked.

Bessent concluded by asserting that the administration plans to implement further measures to stabilize oil markets as the conflict evolves.

“We will maintain a regular schedule of announcing initiatives aimed at providing relief to the market during this conflict,” he stated.

India has emerged as one of the largest purchasers of discounted Russian crude oil since Western sanctions were imposed following Russia's invasion of Ukraine in 2022. New Delhi has contended that energy security and domestic demand necessitate a diversified supply strategy.