The West Asia crisis has pushed oil prices to record highs, prompting a sharp policy shift by the U.S. . After months of urging India to stop buying Russian crude , Washington is now asking Delhi to purchase it, citing supply gaps caused by the conflict. Key Developments On 13 March 2026 , the Trump administration announced a temporary authorization for countries to buy stranded Russian oil at sea. On 6 March 2026 , the U.S. Treasury Department issued a temporary 30‑day waiver for Indian refiners. Scott Bessent explained that India had complied earlier by substituting Russian oil with U.S. supplies, but the waiver eases a global supply crunch. President Donald Trump had earlier imposed 25% punitive tariffs on India for buying Russian oil, accusing Delhi of funding Russia’s war in Ukraine. Iran’s Foreign Minister Abbas Araghchi accused the U.S. of “bullying” India, noting the reversal came just two weeks after the Israel‑U.S. war on Iran . Important Facts The Strait of Hormuz remains a flashpoint, amplifying market volatility. Financial Times reported that the Russian oil windfall generates roughly $150 million per day , underscoring the economic stakes of continued sales. India’s earlier compliance helped the U.S. aim for a “substitution” of Russian oil with American supplies, a strategy now compromised by the waiver. UPSC Relevance Understanding this episode is vital for GS 3 (Economy) as it illustrates how geopolitical conflicts reshape energy security, trade sanctions, and tariff policies. It also touches on GS 2 (Polity) through the use of diplomatic pressure and sanctions as instruments of foreign policy, and on GS 1 (International Relations) by highlighting the strategic importance of the Strait of Hormuz in global oil logistics. Way Forward India may need to balance its energy security with diplomatic considerations, possibly diversifying imports or negotiating a longer‑term waiver. The U.S. could face credibility challenges if its sanction policy appears inconsistent, affecting future cooperation on climate and energy. For policymakers, the episode underscores the need for a resilient domestic energy strategy and a nuanced approach to sanctions that accounts for market realities.