A move that will shift the balance in the Middle East

The US Department of the Treasury has made a significant decision regarding India to prevent disruptions in global oil supply due to intensifying conflicts in the Middle East. Accordingly, Indian refineries will be able to import Russian crude oil currently at sea for a period of 30 days. It was reported that this exceptional decision aims to balance potential supply issues in the energy market caused by the war in the region.

US Treasury Secretary Scott Bessent stated in a post on social media, "To ensure that oil continues to flow to the global market, the Treasury Department is issuing a 30-day temporary waiver allowing Indian refineries to purchase Russian oil."

Bessent also emphasized that this step would not provide an economic advantage to Russia, stating, "This deliberate short-term measure will not provide significant financial benefit to the Russian government, as it only authorizes transactions involving oil that is already stranded at sea."

'IT WILL EASE THE PRESSURE'

While this limited exception granted to India by the Ministry aims to maintain energy flow, it is noted that India is expected to turn toward US oil in the future. He added, "This measure will ease the pressure caused by Iran's attempt to hold global energy hostage."

It is noted that India's strategic crude oil reserves can only meet 25 days of demand; the country supplies approximately 40 percent of its oil imports from the Middle East, particularly through the Strait of Hormuz. Energy experts point out that India, like Turkey, is vulnerable to supply shocks among countries dependent on imports.

According to information obtained from sources familiar with the matter, Indian refineries are trying to secure millions of barrels of emergency crude oil cargo from Russia to address the supply gap created by the uncertainty in the Middle East.

India had become the largest buyer of Russian seaborne crude oil following the invasion of Ukraine in 2022. However, it is reported that the New Delhi administration, which had reduced its purchases as a result of US pressure since the beginning of this year, has contacted Washington again for crude oil supply as the process has intensified. It was noted that steps to move away from Russian oil provided India with the opportunity to avoid a 25 percent customs duty and to conclude a trade agreement with the US.

According to another claim discussed in foreign policy circles, the Indian government requested special permission from the Donald Trump administration in the US to access Russian crude oil due to the crisis in Iran.