U.S. offers India a 30-day waiver for buying Russian oil as Iran war deepens energy supply worries

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After slapping 25% “penalty” tariffs on India for buying Russian crude — revoked last month — the U.S. on Thursday issued a 30-day waiver to New Delhi for purchasing crude from Moscow as the Iran war upends global supplies.

The West Texas Intermediate oil surged 8.51%, or $6.35, to close at $81.01 per barrel on Thursday in the biggest single day gain since May 2020. Global benchmark Brent rose 4.93%, or $4.01, to settle at $85.41 per barrel.

The waiver on purchasing Russian oil will help ease supply worries globally, as India is the world’s fourth biggest refiner and and fifth largest exporter of petroleum products.

India, also the world’s third largest oil importer, had been replacing Russian oil purchases with supply from Middle East, experts said, but with the conflict affecting energy supplies from the Gulf countries, New Delhi is starting to shore up energy from Moscow.