The US Treasury Department has withdrawn the temporary waiver that allowed limited purchases of Russian crude oil after the expiry of its one-month term. The waiver had permitted the purchase of Russian oil stranded at sea, but that special allowance has now ended. The measure was originally introduced to stabilize the global energy market amid severe supply disruptions caused by war-related shocks.

According to reports, following US and Israeli attacks that led to the closure of the Strait of Hormuz, global energy prices surged sharply. Major buyers, including India, used the stranded Russian oil to ease the crisis. With the waiver now lifted, analysts warn that global oil supplies could tighten further, potentially pushing international prices higher.

Experts suggest that the end of this waiver may increase pressure on fuel prices in the United States, where gasoline is already near $4.50 per gallon. India, which had been importing around 2.3 million barrels of Russian oil daily during the waiver period, will now need to seek alternative sources.