While the world’s energy supplies are disrupted during the ongoing war with Iran, the United States has allowed India a 30-day waiver to buy Russian oil, and Iran has allowed Indian vessels to operate in the otherwise closed Strait of Hormuz. 

This temporary relief to allow the most populous country, India, its massive oil needs puts India in a unique geostrategic position in perhaps the most dangerous conflicts of the 21st century. 

The Middle East conflict has caused massive upheaval in global energy markets. India had been punished by the US president for 7 months with harsh trade tariffs as high as 50% on Indian exports. The tariffs were reduced in February after negotiations, and a new trade deal was jointly announced by India and the US. The Trump administration had said India would stop buying Russian oil, while India continued to get large quantities from Iran. With the US war against Iran, India has been given a reprieve by Washington, signifying what the US repeatedly emphasizes is the most comprehensive significant global strategic partnership. It is clear that trade tariffs have been Trump’s global agenda, and India was also penalized in the bargain to make bilateral trade more equitable. 

The US waiver for India was issued through a special license by the US Treasury. Reportedly, Indian refiners went into action immediately to secure additional Russian crude to offset potential shortages from the Middle East. 

It must also be noted that during the 7 months of trade war between the US and India, statements from both sides amplified only their positions and did not lead to an open exchange of any tirades. The latest US decision during the war with Iran reflects an otherwise not so apparent policy on the part of both India and the US to pursue a balancing act. 

India had agreed to gradually taper off its oil purchase from Russia but maintain good diplomatic ties with both the United States and Russia.