'Great partner in stabilising oil prices': Sergio Gor on India buying Russian oil amid Hormuz blockade

US Ambassador Sergio Gor on Wednesday highlighted India's crucial role in maintaining global oil market stability, especially amid disruptions in the Strait of Hormuz. He said India has been a "great partner in maintaining stable oil prices" around the world.

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"The United States recognises ongoing purchases of Russian oil are a part of this effort," he said. "India is one of the largest consumers and refiners of oil, and it is essential for the United States and India to work hand in hand for market stability for Americans and Indians."

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Gor's statement comes as Indian refiners begin purchasing Russian oil to cope with severe disruptions in the global oil supply caused by the closure of the Strait of Hormuz, a vital shipping channel for oil tankers, following joint US-Israel strikes on Iran. 

The blockade of Hormuz has pushed oil prices higher, while creating shortages in several markets, particularly in Asia. In response to these disruptions, the United States has granted India a 30-day waiver allowing its refiners to buy Russian oil already in transit, aiming to alleviate the pressure on oil supplies globally.

Bloomberg reported that since the waiver was granted, Indian refiners, including Indian Oil and Reliance Industries, have purchased over 30 million barrels of Russian crude, which was previously stranded in international waters. These purchases, which span a variety of Russian oil grades, are expected to help stabilise supply chains, ensuring that energy demands are met in a period of acute shortage.

White House Press Secretary Karoline Leavitt clarified that the temporary waiver was a pragmatic response to the short-term disruption caused by the Iranian blockade. "We have temporarily permitted India to accept Russian oil already on ships to ensure energy supplies amid the conflict with Iran," Leavitt explained. The waiver allows India to refine and distribute the crude quickly, thus helping to meet demand without significantly benefiting the Russian government.

Despite the waiver, the US maintains its broader sanctions against Russia, and Treasury Secretary Scott Bessent assured that the measure is purely short-term. "This temporary measure is designed to alleviate the supply gap caused by the Strait of Hormuz closure," Bessent said. Energy Secretary Chris Wright echoed this sentiment, stressing that the US's decision to allow India to take Russian oil was essential in keeping oil prices stable during the crisis.

While the US previously imposed punitive tariffs on India for purchasing Russian oil, Donald Trump's administration removed these tariffs in exchange for New Delhi's reported commitment to cease direct or indirect energy imports from Moscow. The US also expressed confidence that India would increase its purchases of US oil to make up for the Russian oil imports.