India Turns Back to Russian Oil Amid Middle East Tensions

In response to escalating tensions in the Middle East, India is once again increasing its purchases of Russian oil, which had been significantly reduced due to U.S. sanctions. The U.S. recently granted Indian refineries a 30-day exemption to buy stranded Russian oil, a shift from its previous stance aimed at cutting off funding to Russia's war efforts. This comes as oil prices surged above $100 per barrel, driven by fears of disruptions in Middle Eastern oil supply due to the closure of the Strait of Hormuz. Analysts predict that India may revert to sourcing 40-45% of its crude from Russia, raising concerns about the effectiveness of U.S. sanctions and the ongoing geopolitical implications.

Key Details: • U.S. granted a 30-day exemption for Indian refineries to buy Russian oil. • Oil prices surpassed $100 per barrel due to Middle East tensions. • India may increase Russian oil purchases to 40-45% of its crude supply. • The Strait of Hormuz is crucial for 2.5-2.7 million barrels of daily oil imports to India.